By Devika Patel
Knoxville, Tenn., June 17 - MicroIslet, Inc. sold a $1 million promissory note to Ronald Katz on June 11, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Katz immediately advanced $75,000 to the company.
The note matures on July 31, 2008.
It accrues interest at 10% per year until maturity and 24% per year thereafter. Interest is payable monthly in arrears and may, at the company's option, either be capitalized and added to the outstanding principal balance of the note or paid to Katz in cash.
Katz may, at his option, convert all or a portion of the principal and accrued interest into the securities sold in the company's next equity financing transaction in which it raises at least $3 million.
Katz also received a warrant for a number of shares equal to the quotient of the funds advanced to the company divided by $1.25, for a maximum of 800,000 shares.
The warrant became exercisable for 60,000 shares on June 11. It is exercisable at $0.30 until June 11, 2014.
Proceeds will be used for working capital purposes.
MicroIslet is a San Diego-based biotechnology company.
| Issuer: | MicroIslet, Inc.
|
| Issue: | Promissory note
|
| Amount: | $1 million
|
| Maturity: | July 31, 2008
|
| Coupon: | 10%, payable monthly in arrears
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | For up to 800,000 shares
|
| Warrant expiration: | June 11, 2014
|
| Warrant strike price: | $0.30
|
| Investor: | Ronald Katz
|
| Settlement date: | June 11
|
| Stock symbol: | OTCBB: MIIS
|
| Stock price: | $0.29 at close June 11
|
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