Company planned to sell 300,238,527 shares to EFL Tech in offering
By Devika Patel
Knoxville, Tenn., April 11 - Oryon Technologies, Inc. did not receive the $250,000 payment for the third tranche of a $1.5 million private placement of stock with EFL Tech BV, which was scheduled to settle on March 31, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $1 million at pricing on Jan. 21 and $250,000 on Feb. 28.
The company was supposed to sell 300,238,527 common shares at about $0.005 per share. The price per share is an 83.33% discount to the closing share price of $0.03 on Jan. 17.
It issued 85,271,779 shares in the $1 million first tranche. It sold another 85,133,871 shares in the $250,000 second tranche and would have issued 129,832,877 shares in the third $250,000 tranche on March 31.
The company plans to continue discussions with the investor regarding the third tranche but has determined, based on previous discussions, that EFL Tech may not be able to pay the $250,000 it owes under the placement agreement.
As a result, the company said it is considering alternative sources of financing but has no assurance that it will be successful in its attempts. Meanwhile, the lack of adequate cash resources has become an increasingly difficult problem, Oryon said in the filing.
The company has not made a decision on its course of action. However, if it is unable to find additional sources of financing, it will have to consider all options, including ceasing operations or filing for bankruptcy protection.
Oryon is an Addison, Texas, developer and manufacturer of next-generation electroluminescent lighting technology.
| Issuer: | Oryon Technologies, Inc.
|
| Issue: | Common stock
|
| Amount: | $1.25 million
|
| Shares: | 170,405,650
|
| Price: | $0.005 (approximate, first tranche)
|
| Warrants: | No
|
| Investor: | EFL Tech BV
|
| Pricing date: | Jan. 21
|
| Settlement date: | Jan. 21 (for $1 million), Feb. 28 (for $250,000)
|
| Stock symbol: | OTCBB: ORYN
|
| Stock price: | $0.03 at close Jan. 17
|
| Market capitalization: | $24.98 million
|
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