Wizzard reduces conversion price of preferreds, convertibles

By Devika Patel

Knoxville, Tenn., Dec. 2 - Wizzard Software Corp. amended the terms of its agreement with investors Alpha Capital Anstalt, Whalehaven Capital Fund Ltd. and Genesis Microcap Inc., according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The investors, who hold the company's $2.38 million in convertible promissory notes, along with warrants for common shares, agreed to let the company issue $1.1 million in secured notes. The company had been prohibited from taking on new debt under the terms of the convertibles agreement.

In consideration for this concession, the company agreed to reduce the conversion price of the preferred stock to $1.00 per share from $2.05 per share.

This repricing triggered a reduction in the conversion price of the convertible notes, to $1.00 per share from $2.00 per share.

Pittsburgh-based Wizzard provides software and hardware products and services that focus on speech recognition and text-to-speech technology.

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