By Sheri Kasprzak
New York, Feb. 28 - Wherify Wireless, Inc. wrapped a $1.2 million private placement of senior convertible promissory notes.
The 10% notes are due Feb. 15, 2008 and are convertible into common shares at $0.10 each.
The investor received warrants for 3 million shares, exercisable at $0.10 each for five years.
Also, Wherify granted the investor the option to buy up to $7.5 million in series A convertible preferred stock at a 20% discount to the face amount of the preferreds for proceeds of $6 million. The investor may also exercise the option in part by exchanging at least $4.5 million in principal of the notes on a basis of $1.25 in preferred stock for every $1.00 in principal exchanged.
The preferreds are convertible at $0.125 each.
Wherify is based in Redwood Shores, Calif., and develops wireless location products used by law enforcement officials.
| Issuer: | Wherify Wireless, Inc.
|
| Issue: | Senior convertible promissory notes
|
| Amount: | $1.2 million
|
| Maturity: | Feb. 15, 2008
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.10
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.10
|
| Settlement date: | Feb. 22
|
| Stock symbol: | OTCBB: WFYWE
|
| Stock price: | $0.23 at close Feb. 22
|
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