By Devika Patel
Knoxville, Tenn., Nov. 20 - Microfluidics International Corp. gave further details on a $5 million private placement of a convertible debenture in an 8-K filed Thursday with the Securities and Exchange Commission. The deal settled on Nov. 14.
The 9% debenture is convertible into common shares at $1.25 per share. It has a seven-year term.
The single investor, Global Strategic Partners, LLC, also received seven-year warrants for $20 million in shares, which will settle in two tranches. The first tranche will be exercisable for up to a 40% equity stake in the company at $2.00 per share and the second tranche will be exercisable at $3.00 for up to a 50% stake.
The debenture may also be prepaid at the company's option. If the debenture is retired before the third anniversary, the warrants expire in three years, not seven.
The Newton, Mass., company specializes in manufacturing and marketing a line of fluid materials processing systems used for a variety of fluid grinding, mixing, milling, and blending applications across a variety of industries.
| Issuer: | Microfluidics International Corp.
|
| Issue: | Convertible debenture
|
| Amount: | $5 million
|
| Maturity: | Nov. 14, 2015
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | $1.25
|
| Warrants: | For up to $20 million in shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $2.00 (first tranche), $3.00 (second tranche)
|
| Investor: | Global Strategic Partners, LLC
|
| Settlement date: | Nov. 14
|
| Stock symbol: | OTCBB: MFLU
|
| Stock price: | $0.35 at close Nov. 14
|
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