Investors also receive 100% warrant coverage; notes convert at $0.11
By Devika Patel
Knoxville, Tenn., Jan. 18 - Cambridge Heart, Inc. settled a $2.5 million private placement of 8% secured convertible promissory notes on Jan. 17, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Each note is due in 18 months and is initially convertible into common shares at $0.11 per share, which represents an 8.33% discount to $0.12, the Jan. 13 closing share price. The notes may be put, or the company may force conversion under certain conditions.
Investors also received warrants for 22,727,266 shares, or 100% coverage. Each of the warrants is exercisable at $0.15 until Jan. 17, 2016. The strike price is a 25% premium to the Jan. 13 closing price.
The placement included the conversion of $600,000 of the company's senior unsecured promissory notes. Investors included chairman Roderick de Greef, and the company may sell an additional $1.5 million of notes before Feb. 28.
Based in Bedford, Mass., Cambridge Heart develops noninvasive diagnostic tools for cardiac arrest and ventricular arrhythmia.
| Issuer: | Cambridge Heart, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $2.5 million
|
| Maturity: | 18 months
|
| Coupon: | 8%
|
| Conversion price: | $0.11
|
| Call: | Yes
|
| Warrants: | For 22,727,266 shares
|
| Warrant expiration: | Jan. 17, 2016
|
| Warrant strike price: | $0.15
|
| Investors: | Roderick de Greef
|
| Settlement date: | Jan. 17
|
| Stock symbol: | OTCBB: CAMH
|
| Stock price: | $0.12 at close Jan. 17
|
| Market capitalization: | $12.96 million
|
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