10% notes due 2014 sold with five-year warrants for 6 million shares
By Devika Patel
Knoxville, Tenn., Nov. 26 - Las Vegas Railway Express, Inc. settled a $1.75 million private placement of senior secured convertible promissory notes on Nov. 22, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 10% note is due on June 30, 2014 and is convertible into common shares at $0.035 per share, which is a 12.5% discount to the Nov. 21 closing share price of $0.04.
Investors also received warrants for 6 million shares. The warrants are each exercisable for five years at $0.05, which is a 25% premium to the Nov. 21 closing share price.
Proceeds will be used for the completion and deployment of the X-Train's first prototype passenger cars.
The Las Vegas-based company is focused on re-establishing a rail passenger train service between Las Vegas and Los Angeles.
| Issuer: | Las Vegas Railway Express, Inc.
|
| Issue: | Senior secured convertible promissory note
|
| Amount: | $1.75 million
|
| Maturity: | June 30, 2014
|
| Coupon: | 10%
|
| Conversion price: | $0.035
|
| Warrants: | For 6 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.05
|
| Settlement date: | Nov. 22
|
| Stock symbol: | OTCBB: XTRN
|
| Stock price: | $0.04 at close Nov. 21
|
| Market capitalization: | $6.62 million
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