Sale also includes seven-year warrants; Monarch Capital is the agent
By Devika Patel
Knoxville, Tenn., March 3 - CNS Response, Inc. settled the initial tranches of a private placement of 9% subordinated convertible promissory notes on Feb. 28, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company has already sold $1.3 million of notes, which have 50% warrant coverage, in the first tranches of the $5 million offering.
The one-year notes are initially convertible into common shares at $0.30 per share, which represents a 28.57% discount to $0.42, the Feb. 25 closing share price.
The investors also received seven-year warrants for 1,916,664 common shares. The warrants are each exercisable at $0.30, also a 28.57% discount to the Feb. 25 closing share price.
The ongoing placement is expected to settle July 31; it is being conducted by Monarch Capital Group LLC.
Based in Costa Mesa, Calif., CNS Response develops and commercializes new indications of approved drugs and drug candidates.
| Issuer: | CNS Response, Inc.
|
| Issue: | Subordinated convertible promissory notes
|
| Amount: | $5 million
|
| Maturity: | One year
|
| Coupon: | 9%
|
| Conversion price: | $0.30
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.30
|
| Agent: | Monarch Capital Group LLC
|
| Settlement date: | Feb. 28 (for $1.3 million)
|
| Stock symbol: | OTCBB: CNSO
|
| Stock price: | $0.44 at close March 3
|
| Market capitalization: | $24.65 million
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