By Sheri Kasprzak
Atlanta, Feb. 17 - C-Chip Technologies Corp. released additional details on its $4,675,000 private placement.
The company sold senior secured convertible notes to 18 institutional and accredited investors.
The notes bear interest at 9% annually until amortization and then bear interest at 7%. The notes mature in two years and are convertible into common shares at $0.65 each.
The notes amortize monthly beginning four months from the closing date and ending two years after closing. The company may pay the amortization provision in the agreement in cash or common shares based on a 15% discount to market.
The investors also received series E warrants for 5,394,202 shares at $0.75 each for five years and series F warrants for 1,798,042 shares at $0.70 each for one year.
Midtown Partners & Co. LLC was the placement agent in the deal.
C-Chip, based in Montreal, integrates wireless communications, online transactions, software applications and other technologies. The company plans to use the proceeds from the offering for general corporate purposes and working capital.
| Issuer: | C-Chip Technologies Corp.
|
| Issue: | Senior secured convertible notes
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| Amount: | $4,675,000
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| Maturity: | Two years
|
| Coupon: | 9% (until amortization, then 7%)
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | $0.65
|
| Placement agent: | Midtown Partners & Co. LLC
|
| Settlement date: | Feb. 16
|
| Stock price: | $0.85 at close Feb. 16
|
|
|
| Series E warrants
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| Warrants: | For 5,394,202 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.75
|
|
|
| Series F warrants
|
| Warrants: | For 1,798,042 shares
|
| Warrant expiration: | One year
|
| Warrant strike price: | $0.70
|
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