6% series C and series D convertible preferreds sold with notes
By Devika Patel
Knoxville, Tenn., July 7 – OxySure Systems Inc. said it settled a $3 million private placement of convertible preferred stock and convertible notes. The deal raised $2.7 million through the preferreds and $300,000 through the notes.
The company received the $1 million proceeds from the first tranche of the finance on June 30.
Investors paid the remaining $2 million into an escrow account. It will be released when OxySure’s common stock is uplisted to a national exchange.
In the first tranche, the company sold 385,000 of 6% series C preferreds.
The preferreds have a stated value of $2.00 each and were sold with an original issue discount of 10%.
They pay a 6% dividend quarterly in cash or stock and can be called for the first eight months or until a registration statement is effective with the Securities Exchange Commission, whichever comes soonest. The redemption premium is 35%.
On uplisting of the company’s stock, the preferreds convert at the higher of $0.49 and a 35% discount to the current market price.
The investors have an option to purchase a further 385,000 preferreds.
OxySure also issued two convertible notes for $300,000 in the first tranche.
The second tranche is made up of 1.05 million series D convertible preferreds with a stated value of $2.00 per share.
The company sold the series D preferreds at a $100,000 original issue discount.
The series D preferreds pay a 6% dividend quarterly in cash or stock and can be called for the first six months or until a registration statement is effective with the Securities Exchange Commission, whichever comes soonest. The redemption premium is 35%.
They preferreds convert at the higher of $0.49 and a 20 discount to the current market price.
Proceeds will be used to pay down existing convertible notes, for uplisting expenses and working capital.
Based in Frisco, Texas, OxySure has developed a technology that creates medically pure oxygen from two dry, inert proprietary powders. With this technology, oxygen is generated on demand.
| Issuer: | OxySure Systems Inc.
|
| Issue: | Series C convertible preferred stock, series D convertible preferred stock, convertible notes
|
| Amount: | $3 million
|
| Warrants: | No
|
| Settlement date: | June 30
|
| Stock symbol: | OTCBB: OXYS
|
| Stock price: | $0.55 at close June 29
|
| Market capitalization: | $14.56 million
|
|
|
| Series C convertible preferreds
|
| Amount: | $693,000
|
| Preferred shares: | 385,000
|
| Stated amount: | $2.00
|
| Price: | 90% of stated amount
|
| Dividends: | 6%
|
| Conversion price: | The higher of $0.49 and a 35% discount to the market price of the stock
|
| Call: | For first eight months or until a registration statement is effective with the Securities Exchange Commission, whichever comes soonest, at a premium of 35%
|
|
|
| Convertible notes
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| Amount: | $300,000
|
|
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| Series D convertible preferreds
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| Amount: | $2 million
|
| Preferred shares: | 1.05 million
|
| Stated amount: | $2.00
|
| Price: | $2 million total, a $100,000 discount
|
| Dividends: | 6%
|
| Conversion price: | The higher of $0.49 and a 20% discount to the market price of the stock
|
| Call: | For first six months or until a registration statement is effective with the Securities Exchange Commission, whichever comes soonest, at a premium of 35%
|
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