Published on 3/26/2007 in the Prospect News PIPE Daily.
New Issue: LocatePLUS secures $6 million from sale of convertible debentures
By Laura Lutz
Des Moines, March 26 - LocatePLUS Holdings Corp. negotiated a $6 million private placement of secured convertible debentures with Cornell Capital Partners LP, according to an 8-K filing with the Securities and Exchange Commission.
The 8.5% notes mature in three years. They will be convertible at any time at $0.314 per share.
A first tranche, for $3 million, was settled immediately. A second, $2 million tranche will close immediately before the company files a registration statement with the Securities and Exchange Commission. The final tranche, for $1 million, will close after the registration statement is declared effective.
Cornell will also receive 2,384,814 series A warrants; 2,186,079 series B warrants; 2,017,919 series C warrants; 1,748,863 series D warrants; 1,499,026 series E warrants; and 1.5 million series 5 warrants.
The warrants will be exercisable at $0.314 for series A, $0.343 for series B, $0.372 for series C, $0.429 for series D, $0.50 for series E and $0.01 for series F. All the warrants will be exercisable for five years.
LocatePlus, based in Beverly, Mass., produces databases of background information used by law enforcement officials.
| Issuer: | LocatePLUS Holdings Corp.
|
| Issue: | Secured convertible debentures
|
| Amount: | $6 million
|
| Maturity: | Three years
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion price: | $0.314
|
| Warrants: | 2,384,814 series A warrants; 2,186,079 series B warrants; 2,017,919 series C warrants; 1,748,863 series D warrants; 1,499,026 series E warrants; 1.5 million series 5 warrants
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.314 for series A, $0.343 for series B, $0.372 for series C, $0.429 for series D, $0.50 for series E, $0.01 for series F
|
| Investor: | Cornell Capital Partners LP
|
| Pricing date: | March 20
|
| Settlement date: | March 20 (for $3 million)
|
| Stock symbol: | OTCBB: LPHC
|
| Stock price: | $0.25 at close March 26
|
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