By Sheri Kasprzak
New York, July 18 - Satellite Security Corp. completed a $3.3 million private placement of secured convertible promissory notes.
The 10% notes are due July 13, 2009 and are convertible into common shares at a price equal to 75% of the volume weighted average price of the company's stock for the five trading days before conversion.
The investors also received series A warrants for 21,607,465 shares and series B warrants for 18,006,221 shares. The series A warrants are exercisable at $0.13 each for five years and the series B warrants at $0.14 each for five years.
Satellite intends to use the proceeds to repay $540,000 in debt held by Double U Master Fund LP. The rest will be used for working capital.
Connected to the deal, The Aston Organization, Ltd. and Zirk Engelbrecht converted their outstanding $1.14 million promissory note into common shares at $0.11each. A total of 10,363,636 shares were issued in the conversion.
In other news, Aidan Shields was named chief financial officer at Satellite.
Satellite, based in San Diego, develops global position system-based technologies to secure personnel, vehicles and equipment.
| Issuer: | Satellite Security Corp.
|
| Issue: | Convertible promissory notes
|
| Amount: | $3.3 million
|
| Maturity: | July 13, 2009
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | Equal to 75% of the VWAP for the five trading days before conversion
|
| Warrants: | Series A for 21,607,465 shares; series B for 18,006,221 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.13 for series A, $0.14 for series B
|
| Settlement date: | July 13
|
| Stock symbol: | OTCBB: SSCY
|
| Stock price: | $0.1475 at close July 13
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
