Debentures sold at a 10% original-issue discount through Aegis
By Devika Patel
Knoxville, Tenn., June 24 - Max Sound Corp. arranged a private placement of $2.22 million of original-issue discount convertible debentures, which will be sold at a 10% discount, on May 23, according to an 8-K filed Monday with the Securities and Exchange Commission.
The 4% debentures are convertible into common stock at a 25% discount to the average price of the lowest three closing bid prices for the stock during the 10 trading days preceding the conversion date. The company may prepay the notes at 115.
The investors also will receive warrants for 250,000 shares. The warrants are each exercisable at $0.40 for three years. The strike price is an 81.82% premium to the May 22 closing share price of $0.22.
Aegis Capital Corp. was the agent.
Proceeds will be used for clinical trials, expanding sales and marketing and general working capital purposes.
Based in Houston, Max Sound is an audio technology company.
| Issuer: | Max Sound Corp.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $2,222,222
|
| Coupon: | 4%
|
| Price: | 10% discount
|
| Conversion price: | A 25% discount to the average price of the lowest three closing bid prices for the stock during the 10 trading days preceding the conversion date
|
| Call: | At 115
|
| Warrants: | For 250,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.40
|
| Agent: | Aegis Capital Corp.
|
| Pricing date: | May 23
|
| Stock symbol: | OTCBB: MAXD
|
| Stock price: | $0.22 at close May 22
|
| Market capitalization: | $53.09 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
