Conversion price will be equal to price of upcoming financing
By Angela McDaniels
Tacoma, Wash., Feb. 6 - Teckmine Industries, Inc. sold $200,000 of convertible notes in a private placement on Jan. 31.
Each of the four subscribers purchased a convertible note in the principal amount of $50,000 and received 50,000 warrants, according to an 8-K filing with the Securities and Exchange Commission.
Each note bears interest at 12% and matures on Jan. 31, 2014.
Each warrant is exercisable for one share of common stock at an exercise price equal to the conversion price and expires on Jan. 31, 2015.
On Jan. 17, the company signed a letter of intent with Victory Electronic Cigarettes LLC. The conversion price of the notes is equal to the price of a financing as defined in that letter. If the financing does not close on or prior to the closing of the acquisition (as defined in the letter of intent), the conversion price will be $0.50.
The notes are prepayable. If the notes are repaid in full within six months of the issuance date and the holder does not elect to convert the entire amount prior to that repayment, the company is required to issue 0.4 repayment right warrants per dollar of principal held by that holder.
Each repayment right warrant expires on Jan. 31, 2015 and is exercisable for one common share at a price equal to the greater of the conversion price and the market price of the company's stock.
Bridge loan
On Jan. 31, Teckmine agreed to provide a $500,000 secured bridge loan to Victory.
The interest rate is 12%, payable monthly, and the loan is due Jan. 31, 2014.
Victory can repay the loan at any time.
Victory has received $200,000 of the loan and will receive the remaining $300,000 once certain security documents are executed.
Teckmine was incorporated in 2004 with headquarters in Yorba Linda, Calif. It originally planned to acquire a mineral property but was unable to do so. According to its latest 10-Q filing with the SEC, it is seeking opportunities to merge with an established business entity. Its stock last traded in 2008.
| Issuer: | Teckmine Industries, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $200,000
|
| Maturity: | Jan. 31, 2014
|
| Coupon: | 12%
|
| Call option: | Yes
|
| Warrants: | One warrant per dollar of principal held
|
| Warrant expiration: | Jan. 31, 2015
|
| Warrant strike price: | Equal to conversion price
|
| Agent: | Non-brokered
|
| Settlement date: | Jan. 31
|
| Stock symbol: | OTCBB: TCKM
|
| Stock price: | $2.00 on Oct. 28, 2008
|
| Market capitalization: | $39.01 million
|
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