By Devika Patel
Knoxville, Tenn., Aug. 4 - Marketing Worldwide Corp. arranged a $5 million equity credit agreement with Southridge Partners II, LP on July 26, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Southridge Partners has committed to purchase up to $5 million of the company's common shares over two years at a purchase price equal to 90% of the average of the lowest two closing bid prices of the stock during the five trading days following a put notice.
The shares will be sold in tranches equal to the lesser of $150,000 or 500% of the average dollar volume for the 20 trading days immediately preceding the put date.
The investor also received a warrant for 5 million shares, which is initially exercisable at $0.001. The strike price represents a 98% discount to the July 26 closing share price of $0.05.
Based in Howell, Mich., Marketing Worldwide develops customization programs for auto manufacturers.
Issuer: | Marketing Worldwide Corp.
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Issue: | Equity credit agreement
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Amount: | $5 million
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Tenor: | Two years
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Price: | 90% of the average of two lowest closing bid prices following put notice
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Warrants: | For 5 million shares
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Warrant strike price: | $0.001
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Investor: | Southridge Partners II, LP
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Pricing date: | July 26
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Stock symbol: | OTCBB: MWWC
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Stock price: | $0.05 at close July 26
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