By Laura Lutz
Des Moines, Oct. 2 - MDwerks, Inc. settled a private placement of convertible preferred stock for $2 million.
The company sold 200 shares of series B convertible preferred stock for $10,000 each.
The preferreds will be putable for par on Sept. 28, 2008.
The investors also received a series F warrant for 1,500,000 common shares and a series G warrant for 1,000,000 shares. The series F warrant is exercisable at $2.25 per share for seven years, and the series G warrant is exercisable at $2.50 per share for seven years.
Some of the proceeds will be used to repay $150,000 due under a promissory note. The rest of the proceeds will be used for other existing debt and for working capital.
Based in Deerfield Beach, Fla., MDwerks provides software to manage insurance claims to the health care industry.
| Issuer: | MDwerks, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $2 million
|
| Shares: | 200
|
| Price: | $10,000
|
| Warrants: | Series F warrants for 1,500,000 shares; series G warrants for 1,000,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $2.25 for series F; $2.50 for series G
|
| Put: | For par on Sept. 28, 2008
|
| Announcement date: | Oct. 2
|
| Stock symbol: | OTCBB: MDWK
|
| Stock price: | $0.63 at close Oct. 2
|
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