Published on 11/14/2007 in the Prospect News PIPE Daily.
New Issue: Malex wraps $5.53 million placement of convertibles
By Laura Lutz
Des Moines, Nov. 14 - Malex Inc. sold $5.53 million of convertible subordinated notes to three accredited investors, according to an 8-K filing with the Securities and Exchange Commission.
Barron Partners LP was one of the investors.
The notes mature on Sept. 30, 2008 and bear interest at 3% per year. If the notes are converted, no interest will be payable upon conversion.
The notes are convertible into either 14,787,135 shares of series A convertible preferred stock or 14,787,135 shares of common stock.
Either way, holders will also receive warrants for 11,176,504 shares with a strike price of $0.58, warrants for 5,588,252 shares with a strike price of $0.83 and warrants for 2,065,000 shares with a strike price of $0.92. The warrants are exercisable for five years.
Each preferred share is exchangeable for one common share.
Based in Wuxi City, China, Malex manufactures textile machines and equipment for power plants, operating through the Huayang Group.
| Issuer: | Malex Inc.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $5,525,000
|
| Maturity: | Sept. 30, 2008
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion ratio: | Notes into either 14,787,135 series A convertible preferred shares or 14,787,135 common shares, along with warrants for 18,829,756 shares; each preferred share into one common share
|
| Warrants: | For 18,829,756 shares upon conversion of notes
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.58 for 11,176,504 shares; $0.83 for 5,588,252 shares; $0.92 for 2,065,000 shares
|
| Investors: | Barron Partners LP, others
|
| Settlement date: | Nov. 13
|
| Stock symbol: | OTCBB: MLEX
|
| Stock price: | $0.37 at close Nov. 13
|
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