10% note sold to JMJ Financial with warrants; 8% convertibles sold too
By Devika Patel
Knoxville, Tenn., June 26 - OriginOil Inc. sold a $100,000 promissory note to JMJ Financial on June 20, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It may sell an additional $300,000 of notes to the investor. It also raised $121,250 on April 19 by selling unsecured convertible promissory notes.
The 10% JMJ note matures on Sept. 18, 2012.
JMJ also will receive warrants for 615,384 shares, and received warrants for 153,846 shares in this tranche. The warrants are each exercisable at $0.65 for six years. The warrant strike price is a 35% discount to the June19 closing share price of $1.00.
The one-year 8% unsecured convertible promissory notes were accompanied by 126,429 common shares and may be redeemed at 112. They convert to common stock at $1.75 per share, which is a 37.8% premium to the April 18 closing share price of $1.27.
The Los Angeles company has developed a technology to produce a bio-fuel from algae through a cost-effective, high-speed manufacturing process to replace petroleum in various applications such as diesel, gasoline, jet fuel, plastics and solvents.
| Issuer: | OriginOil Inc.
|
| Issue: | Promissory notes, unsecured convertible promissory notes, 126,429 common shares
|
| Amount: | $521,250
|
| Stock symbol: | OTCBB: OOIL
|
| Market capitalization: | $10.83 million
|
|
|
| Promissory note
|
| Amount: | $400,000
|
| Maturity: | Sept. 18, 2012
|
| Coupon: | 10%
|
| Warrants: | For 615,384 shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $0.65
|
| Investor: | JMJ Financial
|
| Settlement date: | June 20 (for $100,000)
|
| Stock price: | $1.00 at close June 19
|
|
|
| Convertible promissory notes
|
| Amount: | $121,250
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Conversion price: | $1.75
|
| Call: | At 112
|
| Warrants: | No
|
| Settlement date: | April 19
|
| Stock price: | $1.27 at close April 18
|
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