By Devika Patel
Knoxville, Tenn., Aug. 20 - Knobias, Inc. settled a $2.18 million private placement of senior secured convertible notes with investor Camofi Master LDC on Aug. 14, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The three-year notes were sold on substantially the same terms as the notes Knobias issued to Camofi in June 2007.
They are convertible into common shares at a conversion price of $0.00622 per share.
The notes bear interest at Prime rate plus 275 basis points. Interest is payable in cash, in kind or in shares at the interest conversion price, which is equal to 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 notes were issued in exchange for funds Camofi advanced to the company on a monthly basis during the six-month period ended June 30.
Proceeds were used to finance the company's working capital requirements and to sustain operations.
Based in Ridgeland, Miss., Knobias is a financial software developer.
| Issuer: | Knobias, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $2,176,141
|
| Maturity: | Three years
|
| Coupon: | Prime rate plus 275 bps, payable in cash, in kind or in shares
|
| Conversion price: | $0.00622
|
| Warrants: | No
|
| Investor: | Camofi Master LDC
|
| Settlement date: | Aug. 14
|
| Stock symbol: | OTCBB: KBAS
|
| Stock price: | $0.05 at close Aug. 14
|
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