By Sheri Kasprzak
Atlanta, Feb. 22 - Lifeline Therapeutics Inc. said it has secured an additional $960,000 from the private placement of a bridge loan started Oct. 26, 2004.
Since Oct. 26, the company has raised a total of $2,545,000 from the offering from accredited investors.
The loan matures the earlier of six months or the first closing of the offering and bears interest at 10% annually.
The investors will receive warrants equal to half of the principal amount of the loan. The warrants are exercisable at $2 each for three years.
The investors have the option, in lieu of repayment, to exchange the notes and interest for units at $2 each. The units include one share and one warrant for an additional share at $2.50 each for three years.
On Jan. 31, the company had raised a total of $1,585,000 from the private placement.
Based in Englewood, Colo., Lifeline is a nutriceuticals company focused on energy enhancing products. The company plans to use the proceeds for working capital and for payments to Chemino Co., which makes its products.
| Issuer: | Lifeline Therapeutics Inc.
|
| Issue: | Bridge loan
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| Amount: | $2,545,000
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| Maturity: | Six months or first closing
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $20,000 (into units of 10,000 shares and 10,000 warrants)
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| Unit warrants: | 10,000 per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.50
|
| Warrants: | For one half of the principal amount
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.00
|
| Announcement date: | Feb. 21
|
| Stock price: | $7.60 at close Feb. 21
|
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