Deal includes 50% warrant coverage; warrants are exercisable at $0.23
By Devika Patel
Knoxville, Tenn., Jan. 21 - AtheroNova Inc. settled a $350,000 private placement of 6% senior subordinated convertible notes on Jan. 13 and Jan. 14, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company may sell another $1.05 million of convertibles.
Each note is due in three years and is convertible into common shares at a conversion price equal to the lesser of $0.23 and 70% of the average of the three lowest daily volume-weighted average prices during the 20 consecutive trading days preceding the conversion. The notes may be prepaid at 150.
The two investors also received 50% warrant coverage. Each of the 10-year warrants is exercisable at $0.23, which is a 48.89% discount to the Jan. 10 closing price of $0.45.
AtheroNova is an Irvine, Calif., development stage company that is developing products to address the treatment of atherosclerosis through the use of natural compounds and their derivatives.
| Issuer: | AtheroNova Inc.
|
| Issue: | Senior subordinated convertible notes
|
| Amount: | $350,000
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Conversion price: | The lesser of $0.23 and 70% of the average of the three lowest daily volume-weighted average prices during the 20 consecutive trading days preceding the conversion
|
| Call: | At 150
|
| Warrants: | 50% coverage
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.23
|
| Settlement date: | Jan. 13 and Jan. 14
|
| Stock symbol: | OTCBB: AHRO
|
| Stock price: | $0.45 at close Jan. 10
|
| Market capitalization: | $17.68 million
|
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