New Issue: BAXL wraps another $125,000 tranche of $4 million convertible notes, warrants sale

By Devika Patel

Knoxville, Tenn., June 26 - BAXL Technologies, Inc. said it settled a $125,000 tranche of a $4 million private placement of secured convertible notes and warrants on June 20, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the company also completed a $200,000 tranche on March 5, the pricing date, a $200,000 tranche on March 26 and a $275,000 tranche on April 23.

Edward H. Arnold, a company director, bought the notes and also received warrants for 12,500 shares. Arnold received warrants for 67,500 shares in the last three tranches. The first two tranches of warrants are exercisable until March 26, 2013 at $1.88 per share. The third tranche is exercisable at that price until April 23, 2013 and this tranche is exercisable at that price until June 19, 2013.

The first two tranches of notes have a 9% coupon and will mature in August. The third tranche of notes has a 9% coupon as well, but matures on Oct. 23 and this tranche matures on Dec. 19 with a 9% coupon.

Upon maturity, the principal will either be repaid or converted into common shares, at the holder's option.

The conversion price will be the lesser of $1.50 and 75% of the price of BAXL Holdings, Inc's common shares in its next private placement.

BAXL Technologies is a subsidiary of BAXL Holdings. The private technology company is based in Bethel, Conn.

Issuer:	BAXL Technologies, Inc.
Issue:	Secured convertible notes, warrants
Amount:	$4 million
Maturity:	August (for $400,000 in notes); Oct. 23 (for $275,000 in notes), Dec. 19 (for $125,000 in notes)
Coupon:	9%
Price:	Par
Yield:	9%
Conversion price:	The lesser of $1.50 and 75% of the price of BAXL Holdings, Inc's common shares in its next private placement
Warrants:	For 80,000 shares
Warrant expiration:	March 26, 2013 (for 40,000 warrants); April 23, 2013 (for 27,500 warrants), June 19, 2013 (for 12,500 warrants)
Warrant strike price:	$1.88
Pricing date:	March 5
Settlement dates:	March 5(for $200,000), March 26 (for $200,000); April 23 (for $275,000), June 26 (for $125,000)

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