Investor Southridge also gets 450,000 common shares as part of deal
By Devika Patel
Knoxville, Tenn., March 10 - Technest Holdings, Inc. arranged an equity purchase agreement with Southridge Partners II LP on March 7, according to an 8-K filed Thursday with the Securities and Exchange Commission. The two-year agreement could raise $5 million.
The purchase price for the shares will be equal to 95% of the average of the lowest three closing bid prices, consecutive or inconsecutive, during the five-trading-day pricing period.
If the bid price on any trading day during the pricing period is more than 20% below the average of the five most recent closing bid prices prior to the put notification date, then the tranche will be reduced by 20%. If the bid price is more than 20% below the average of the five most recent closing bid prices prior to the put notification date for more than two days during the pricing period, then the two parties may elect to cancel the tranche.
Southridge also received 450,000 common shares.
Bethesda, Md.-based Technest develops remote sensing technologies used in three-dimensional imaging.
| Issuer: | Technest Holdings, Inc.
|
| Issue: | Equity purchase agreement, 450,000 common shares
|
| Amount: | $5 million
|
| Tenor: | Two years
|
| Price: | 5% discount
|
| Warrants: | No
|
| Investor: | Southridge Partners II LP
|
| Fees: | 450,000 shares
|
| Settlement date: | March 7
|
| Stock symbol: | OTCBB: TCNH
|
| Stock price: | $0.08 at close March 7
|
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