Note due April 19, 2016 was sold to Typenex Co-Investment for $986,990
By Devika Patel
Knoxville, Tenn., Oct. 22 – Hydrocarb Energy Corp. sold a $1.73 million convertible secured promissory note to Typenex Co-Investment, LLC on Oct. 19, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company raised $986,990, net of a $475,000 original issuance discount, $5,000 of legal fees and $263,011 raised through the forgiveness of debt under a $350,000 secured convertible promissory note.
The 0% note is due April 19, 2016 and converts into common stock at a price equal to 80% of the five lowest closing bid prices of the stock during the 20 trading days preceding conversion.
Proceeds will be used to pay off debt owed under the company’s $575,464 variable rate convertible note held by KBM Worldwide, Inc., to pay debt owed under the company’s $373,333 variable rate convertible note held by JMJ Financial and for other general corporate purposes.
The petroleum exploration company is based in Houston.
Issuer: | Hydrocarb Energy Corp.
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Issue: | Convertible secured promissory note
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Amount: | $1.73 million
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Maturity: | April 19, 2016
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Price: | $986,990
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Coupon: | 0%
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Conversion price: | 80% of the five lowest closing bid prices of the stock during the 20 trading days preceding conversion
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Warrants: | No
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Investor: | Typenex Co-Investment, LLC
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Settlement date: | Oct. 19
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Stock symbol: | OTCBB: HECC
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Stock price: | $1.12 at close Oct. 16
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Market capitalization: | $29.75 million
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