By Sheri Kasprzak
New York, March 23 - Stronghold Technologies, Inc. said it has completed a $1.45 million private placement of secured convertible notes with four institutional investors.
New Millennium Capital Partners II, LLC; AJW Qualified Partners, LLC; AJW Offshore, Ltd.; and AJW Partners, LLC bought the 8% notes.
The notes are due in two years and are convertible into common shares at a price equal to the lower of $0.05 or 25% of the average of the three lowest intraday trading prices for the 20 trading days before conversion.
Stronghold may prepay the notes any time as long as the company's stock trades below $0.08.
The investors also received 2.9 million shares, exercisable at $0.05 each for five years.
Based in Basking Ridge, N.J., Stronghold develops handheld wireless technologies used by automotive dealership software makers.
| Issuer: | Stronghold Technologies, Inc.
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| Issue: | Secured convertible notes
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| Amount: | $1.45 million
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| Maturity: | Two years
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | The lesser of $0.05 or 25% of the average of the three lowest intraday trading prices for the 20 trading days before conversion
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| Warrants: | For 2.9 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.05
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| Investors: | New Millennium Capital Partners II, LLC; AJW Qualified Partners, LLC; AJW Offshore, Ltd.; and AJW Partners, LLC
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| Settlement date: | March 17
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| Stock symbol: | OTCBB: SGHT
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| Stock price: | $0.02 at close March 17
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