Original issue discount note sold with 100% five-year warrant coverage
By Devika Patel
Knoxville, Tenn., March 18 – MassRoots, Inc. sold $1.46 million of six-month secured convertible promissory notes in a private placement on March 17, according to an 8-K filed Friday with the Securities and Exchange Commission. The original issue discount notes were sold for $1.37 million.
The notes may be prepaid at 120 in the first 90 days and at 135 after the first 90 days. They initially convert to common stock at $1.00 per share.
The notes were sold with 100% warrant coverage. The five-year warrants are each exercisable at $1.00, a 1.01% premium to the March 16 closing share price of $0.99. The conversion price is also a 1.01% premium to that price.
Chardan Capital Markets, LLC was the agent.
The Denver-based company offers a semi-anonymous social networking app for cannabis users.
| Issuer: | MassRoots, Inc.
|
| Issue: | Original issue discount secured convertible promissory notes
|
| Amount: | $1,461,333
|
| Maturity: | Six months
|
| Price: | $1.37 million
|
| Conversion price: | $1.00
|
| Call: | At 120 in the first 90 days, then at 135
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Agent: | Chardan Capital Markets, LLC
|
| Settlement date: | March 17
|
| Stock symbol: | OTCBB: MSRT
|
| Stock price: | $0.99 at close March 16
|
| Market capitalization: | $48.78 million
|
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