By Devika Patel
Knoxville, Tenn., Sept. 30 - Media Sciences International Inc. sold $1.25 million of its 10% convertible notes to MicroCapital Fund, LP and MicroCapital Fund, Ltd. on Sept. 24, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The three-year notes are convertible into common shares at $1.65 per share.
MicroCapital also received three-year warrants, which are exercisable for $1.25 million in additional notes and for five-year warrants. The five-year warrants are exercisable for 387,787 common shares at $1.65.
The three-year warrants may expire sooner if the company's shares close at or above a certain price per share for at least 24 trading days within a 30 trading day period.
Proceeds will be used to fund capital expenditure and working capital requirements associated with the company's China-based manufacturing operations.
Based in Oakland, N.J., Media Sciences makes printing supplies for color printing businesses. It plans to use the proceeds for working capital.
| Issuer: | Media Sciences International Inc.
|
| Issue: | Convertible notes
|
| Amount: | $1.25 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $1.65
|
| Warrants: | For 387,787 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.65
|
| Investors: | MicroCapital Fund, LP and MicroCapital Fund, Ltd.
|
| Settlement date: | Sept. 24
|
| Stock symbol: | Nasdaq: MSII
|
| Stock price: | $1.70 at close Sept. 24
|
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