By Sheri Kasprzak
New York, June 13 - Knobias, Inc. sealed a $1.53 million private placement of senior secured convertible notes as part of a restructuring agreement.
Camofi Master LDC bought the notes due June 6, 2010. The notes bear interest at Prime rate plus 275 basis points. The notes are convertible into common shares at 85% of the lesser of the daily volume weighted average price of the company's stock for the 10 trading days immediately before the interest payment is due or the VWAP for the 10 trading days immediately before the interest payment shares are issued and delivered, if after the interest payment date. The initial conversion price is $0.00622 each.
Of the proceeds, $200,000 will be used to pay off debt. The rest will be used for working capital.
The company anticipates raising another $1.47 million in the notes within the next 60 days.
Connected to the deal, $5.1 million in outstanding debt was converted into series B convertible preferred stock and the remainder of the company's debt, in principal of $250,000, was converted into four-year subordinated loans.
Also, holders of the company's series A preferred stock agreed to convert their holdings into common shares once a proposed 1-for-100 reverse stock split is completed.
Based in Ridgeland, Miss., Knobias is a financial software developer.
| Issuer: | Knobias, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $1.53 million
|
| Maturity: | June 6, 2010
|
| Coupon: | Prime rate plus 275 basis points
|
| Conversion price: | $0.00622 (or the VWAP of the company's stock for the 10 trading days immediately before interest payment is due)
|
| Warrants: | No
|
| Investor: | Camofi Master LDC
|
| Settlement date: | June 6
|
| Stock symbol: | OTCBB: KNBS
|
| Stock price: | $0.02 at close June 6
|
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