By Devika Patel
Knoxville, Tenn., Dec. 2 - Cyber Defense Systems, Inc. settled a $137 million private placement of secured convertible notes on Nov. 24, according to an 8-K filed with the Securities and Exchange Commission.
The notes were sold to AJW Partners, LLC, AJW Master Fund, Ltd. and New Millennium Capital Partners II, LLC.
The 15% notes mature in two years and are convertible into shares at the lower of $0.0005 or the average of the three lowest trading prices of the company's stock for the 20 trading days before conversion.
The company may prepay the notes if no default exists, there are a sufficient number of shares available for conversion and the shares' market price is at or below $0.0005 per share.
The investors will also receive warrants for 50 million shares, which are exercisable at $0.0005 for seven years.
Proceeds will be used for debt repayment and working capital.
Based in St. Petersburg, Fla., Cyber Defense designs unmanned air vehicles used in homeland security.
| Issuer: | Cyber Defense Systems, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $137 million
|
| Maturity: | Two years
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Conversion price: | Lower of $0.0005 or the average of the three lowest trading prices for the 20 trading days before conversion
|
| Warrants: | For 50 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.0005
|
| Investors: | AJW Partners, LLC, AJW Master Fund, Ltd., New Millennium Capital Partners II, LLC
|
| Announcement date: | Dec. 2
|
| Settlement date: | Nov. 24
|
| Stock symbol: | OTCBB: CYDF
|
| Stock price: | $0.001 at close Dec. 1
|
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