By Sheri Kasprzak
New York, March 14 - Chapeau, Inc. said it pocketed $3 million from the sale of a convertible promissory note.
The company sold the 12% note to the Gordon V. and Helen C. Smith Foundation, one of the company's current shareholders.
The note is due March 10, 2009 and is convertible into shares during the first year at $1.25. After March 10, 2007, the conversion price will be equal to the lesser of 75% of the average closing bid price of the company's stock for the 90 days before conversion or $1.25.
The initial conversion price represents at 56.25% premium to the company's closing stock price of $0.80 on March 10.
Based in Sparks, Nev., Chapeau develops engines that circulate emissions to produce additional power.
| Issuer: | Chapeau, Inc.
|
| Issue: | Convertible promissory note
|
| Amount: | $3 million
|
| Maturity: | March 10, 2009
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $1.25 for the first year; the lesser of 75% of the average closing bid price of the company's stock for the 90 days before conversion or $1.25 thereafter
|
| Warrants: | No
|
| Investor: | The Gordon V. and Helen C. Smith Foundation
|
| Settlement date: | March 10
|
| Stock symbol: | OTCBB: CPEU
|
| Stock price: | $0.80 at close March 10
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
