Investors also receive 100% warrant coverage; notes convert at $0.11
By Devika Patel
Knoxville, Tenn., May 23 - Cambridge Heart, Inc. raised $550,000 in the third tranche of a $3.49 million private placement of 8% secured convertible promissory notes on May 23, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal raised $2.5 million on Jan. 17 and $440,000 on Feb. 28.
Each note is due on July 17, 2013 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 100% warrant 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.
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: | $3.49 million
|
| Maturity: | July 17, 2013
|
| Coupon: | 8%
|
| Conversion price: | $0.11
|
| Call: | Yes
|
| Put: | Yes
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Jan. 17, 2016
|
| Warrant strike price: | $0.15
|
| Investors: | Roderick de Greef
|
| Settlement dates: | Jan. 17 (for $2.5 million), Feb. 28 (for $440,000), May 23 (for $550,000)
|
| Stock symbol: | OTCBB: CAMH
|
| Stock price: | $0.12 at close Jan. 17
|
| Market capitalization: | $7.51 million
|
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