Investors also received 140% warrant coverage with eight-month notes
By Devika Patel
Knoxville, Tenn., Dec. 17 - KL Energy Corp. settled a private placement of 10% secured convertible promissory notes on Nov. 30, according to an 8-K filed Friday with the Securities and Exchange Commission. It raised $4.68 million.
The note is due in eight months and is convertible into common shares at $1.10 per share, which represents a 56% discount to $2.50, the Nov. 29 closing share price.
Investors also received 140% warrant coverage. The warrants are each exercisable at $1.10 within four years of the note's maturity.
Based in Rapid City, S.D., KL Energy is focused on providing a non-surgical, non-chemical solution for wrinkling and aging skin.
| Issuer: | KL Energy Corp.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $4.68 million
|
| Maturity: | Eight months
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $1.10
|
| Warrants: | 140% coverage
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $1.10
|
| Settlement date: | Nov. 30
|
| Stock symbol: | Pink Sheets: KLEG
|
| Stock price: | $2.50 at close Nov. 30
|
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