By Devika Patel
Knoxville, Tenn., April 11 - TAO Minerals, Ltd. arranged a $1 million private placement of convertible notes on April 4, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes have a 10% coupon and will mature April 4, 2011. They are convertible into common shares at a price equal to 50% percent of the average of the volume weighted average price of the shares during the five trading days immediately preceding a conversion.
Outboard Investments Ltd. bought the notes. It advanced $125,000 to the company on April 9 and will pay a second installment of $875,000 after a registration statement for the underlying common shares is declared effective by the SEC.
Based in Medellin, Colombia, Tao is a gold and diamond exploration company.
| Issuer: | TAO Minerals, Ltd.
|
| Issue: | Convertible notes
|
| Amount: | $1 million
|
| Maturity: | April 4, 2011
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | 50% percent of the average of the volume weighted average price of the company's common shares during the five trading days immediately preceding the conversion
|
| Warrants: | No
|
| Investors: | Outboard Investments Ltd.
|
| Pricing date: | April 4
|
| Stock symbol: | OTCBB: TAOL
|
| Stock price: | $0.06 at close April 4
|
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