Deal includes warrants; proceeds used for administrative purposes
By Devika Patel
Knoxville, Tenn., May 4 - Location Based Technologies, Inc. sold a $500,000 promissory note on May 1, according to an 8-K filed Friday with the Securities and Exchange Commission.
The 12% note matures in six months and was issued with an original issue discount of 10%.
Investors also received warrants for 1,086,957 shares, which are each exercisable at $0.23 for five years. The strike price is a 39.47% discount to the April 30 closing share price of $0.38.
Proceeds will be used for general and administrative purposes.
Based in Anaheim, Calif., Location Based Technologies designs, develops, and sells personal, pet, and vehicle locator devices and services.
| Issuer: | Location Based Technologies, Inc.
|
| Issue: | Promissory note
|
| Amount: | $500,000
|
| Maturity: | Six months
|
| Price: | 10% discount
|
| Coupon: | 12%
|
| Warrants: | For 1,086,957 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.23
|
| Settlement date: | May 1
|
| Stock symbol: | OTCBB: LBAS
|
| Stock price: | $0.38 at close April 30
|
| Market capitalization: | $75.27 million
|
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