8% redeemable note due Jan. 16, 2016 sold to LG Capital through deal
By Devika Patel
Knoxville, Tenn., March 13 – Global Digital Solutions, Inc. sold an $82,500 convertible promissory note to Tangiers Investment Group, LLC as part of a $220,000 private placement on March 10, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on March 8.
The 10% note is due on March 8, 2016 and may be converted into common shares at a conversion price equal to the lesser of $0.04 or 60% of the lowest trading price of the stock during the 20 consecutive trading days preceding conversion. The note may be prepaid at prices ranging from 115 to 135.
The company took in $67,500 in the first tranche after paying $7,500 in original issue discount, due diligence and legal fees and $7,500 in finder’s fees.
The West Palm Beach, Fla., company provides defense technology-based solutions and systems to commercial customers, the U.S. military and foreign allies and U.S. government civil agencies and friendly counterparts.
| Issuer: | Global Digital Solutions, Inc.
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| Issue: | Convertible promissory note
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| Amount: | $220,000
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| Maturity: | March 8, 2016
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| Coupon: | 10%
|
| Conversion price: | The lesser of $0.04 or 60% of the lowest trading price of the stock during the 20 consecutive trading days preceding conversion
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| Call: | At 115 to 135
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| Warrants: | No
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| Investor: | Tangiers Investment Group, LLC
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| Fees: | $15,000
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| Pricing date: | March 8
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| Settlement date: | March 10 (for $82,500)
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| Stock symbol: | OTCBB: GDSI
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| Stock price: | $0.04 at close March 6
|
| Market capitalization: | $6.15 million
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