By Sheri Kasprzak
New York, Jan. 9 - Time America, Inc. said it completed a private placement of a secured convertible term note for $2 million.
The note was purchased by Laurus Master Fund, Ltd. and replaces a $1,058,310 note issued on March 22, 2004.
The new note matures in three years, bears interest at Prime plus 200 basis points with a 7.25% floor and is initially convertible into shares at $0.65 each.
The term note is payable in 30 equal monthly installments of $66,666.67 beginning July 1.
The note is redeemable at 115% of principal plus interest.
On the same date, Laurus purchased a $1.5 million secured non-convertible revolving note. The two-year note bears interest at Prime plus 200 bps with a 7.25% floor.
Laurus also received warrants for 140,000 shares, exercisable at $0.65 each for seven years.
Based in Scottsdale, Ariz., Time America develops time- and labor-management hardware and software.
| Issuer: | Time America, Inc.
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| Issue: | Secured convertible term note
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| Amount: | $2 million
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| Maturity: | Three years
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| Coupon: | Prime plus 200 basis points, 7.25% floor
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| Conversion price: | $0.65
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| Warrants: | For 140,000 shares
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| Warrant expiration: | Seven years
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| Warrant strike price: | $0.65
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| Investor: | Laurus Master Fund, Ltd.
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| Settlement date: | Jan. 3
|
| Stock price: | $0.59 at close Jan. 3
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