Investor may buy more 7% debentures with varying prices for one year
By Devika Patel
Knoxville, Tenn., March 12 - Micro Imaging Technology, Inc. negotiated a $2 million private placement of 7% senior secured convertible debentures with Alpine MIT Partners, LLC on March 8, according to an 8-K filed Monday with the Securities and Exchange Commission.
The notes mature in five years and are convertible into common shares at $0.003 per share.
The conversion price reflects a 70% discount to the March 9 closing share price of $0.01.
The $2 million investment will be structured in tranches, with $1 million due within thirty days of settlement, and the remaining $1 million available as an additional investment right, similar to a warrant, with an investment window of up to one year and incentives to make the investment earlier, as the per-share purchase price will range from $0.00375 in the initial six months to $0.0075 after nine months.
These prices are 62.5% and 25% discounts to the March 9 closing price.
Alpine MIT Partners will have a security interest in the company's assets until the debenture is repaid or converted.
Settlement of the first tranche is expected April 6.
Proceeds will be used for development and increased product roll-out.
The San Clemente, Calif., company is developing fluid monitoring systems for water monitoring, food processing and clinical applications in the United States.
| Issuer: | Micro Imaging Technology, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $2 million
|
| Maturity: | Five years
|
| Coupon: | 7%
|
| Conversion price: | $0.003
|
| Warrants: | No
|
| Investor: | Alpine MIT Partners, LLC
|
| Pricing date: | March 22
|
| Settlement date: | April 6 (for $1 million)
|
| Stock symbol: | OTCBB: MMTC
|
| Stock price: | $0.01 at close March 9
|
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