Deal sells 10% promissory notes due in two years, convertible at $0.20
By Devika Patel
Knoxville, Tenn., Sept. 5 - Location Based Technologies, Inc. sold $500,000 of secured convertible promissory notes on Aug. 31, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 10% notes mature in two years and have a conversion price of $0.20, which is a 53.85% premium to the Aug. 30 closing share price of $0.13.
The investor also received three-year warrants for 1 million common shares, which are each exercisable at $0.20. The strike price is also a 53.85% premium to the Aug. 30 closing share price.
Based in Irvine, Calif., Location Based Technologies designs, develops and sells personal, pet and vehicle locator devices and services.
| Issuer: | Location Based Technologies, Inc.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $500,000
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Conversion price: | $0.20
|
| Warrants: | For 1 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.20
|
| Settlement date: | Aug. 31
|
| Stock symbol: | OTCBB: LBAS
|
| Stock price: | $0.13 at close Aug. 30
|
| Market capitalization: | $29.87 million
|
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