5% discounted senior note sold to Lincoln Park with six-year warrants
By Devika Patel
Knoxville, Tenn., Nov. 23 – Konared Corp. sold $300,000 of senior convertible notes to Lincoln Park Capital Fund, LLC for $270,000 on Nov. 23, according to an 8-K filed Monday with the Securities and Exchange Commission.
The 5% debenture matures on Dec. 31, 2016. It is convertible into common stock at $0.05 per share, which is a 16.67% discount to the Nov. 20 closing share price of $0.06. The debt may be prepaid at 120.
Lincoln Park also received warrants for 5 million shares, which are each exercisable at $0.07 for six years. The strike price is a 16.67% premium to the Nov. 20 closing share price.
The Kalaheo, Hawaii, company produces extracts and powders from the coffee fruit for use in antioxidant juices and organic green teas as well as ingredients that can be added to food, beverages and nutritional products.
| Issuer: | Konared Corp.
|
| Issue: | Senior convertible note
|
| Amount: | $300,000
|
| Maturity: | Dec. 31, 2016
|
| Price: | $30,000 original issuance discount ($270,000)
|
| Coupon: | 5%
|
| Conversion price: | $0.05
|
| Call: | At 120
|
| Warrants: | For 5 million shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $0.07
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Settlement date: | Nov. 23
|
| Stock symbol: | OTCBB: KRED
|
| Stock price: | $0.06 at close Nov. 20
|
| Market capitalization: | $6.5 million
|
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