8%, 10% notes were sold to investors KBM Worldwide and EMA Financial
By Devika Patel
Knoxville, Tenn., Feb. 24 – Global Digital Solutions, Inc. sold a $115,000 convertible promissory note to KBM Worldwide, Inc. for $90,000, or an $11,000 original issue discount with $4,000 of legal fees and a finder’s fee of $10,000, on Feb. 20 in a deal that priced Feb. 17, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company also sold a $68,000 convertible note to EMA Financial, LLC with a $6,800 original issue discount on Feb. 23.
The 8% KBM note is due on Jan. 17, 2016 and may be converted into common shares at a conversion price equal to 61% of the average of the lowest three trading prices of the stock during the 10 trading days preceding conversion. It may be prepaid at prices ranging from 110 to 135 until 180 days following the issuance date.
The 10% EMA note is due on Jan. 19, 2016 and may be converted into common shares at a conversion price equal to the lower of the closing sale price of the stock on the day preceding the closing date and 60% of the lowest trading price of the stock during the 25 consecutive trading days preceding conversion. It may be prepaid at 150 until 180 days following the issuance date.
The company paid due diligence and documentation preparation expenses of $3,000 and a finder’s fee of $6,120 for the EMA note.
Proceeds will be used for general corporate purposes.
The West Palm Beach, Fla., company provides defense technology-based solutions and systems to commercial customers, the U.S. military and foreign allies, and U.S. government civil agencies and friendly counterparts.
| Issuer: | Global Digital Solutions, Inc.
|
| Issue: | Convertible promissory note, convertible note
|
| Amount: | $183,000
|
| Warrants: | No
|
| Stock symbol: | OTCBB: GDSI
|
| Market capitalization: | $5.31 million
|
|
|
| KBM note
|
| Amount: | $115,000
|
| Maturity: | Jan. 17, 2016
|
| Price: | $90,000 ($11,000 original issue discount)
|
| Coupon: | 8%
|
| Conversion price: | 61% of the average of the lowest three trading prices of the stock during the 10 trading days preceding conversion
|
| Call: | At 110 to 135 for first 180 days
|
| Investor: | KBM Worldwide, Inc.
|
| Fees: | $14,000
|
| Pricing date: | Feb. 17
|
| Settlement date: | Feb. 20
|
| Stock price: | $0.05 at close Feb. 13
|
|
|
| KBM note
|
| Amount: | $68,000
|
| Maturity: | Jan. 19, 2016
|
| Price: | $6,800 original issue discount
|
| Coupon: | 10%
|
| Conversion price: | The lower of the closing sale price of the stock on the day preceding the closing date and 60% of the lowest trading price of the stock during the 25 consecutive trading days preceding conversion
|
| Call: | At 150 for first 180 days
|
| Investor: | EMA Financial, LLC
|
| Fees: | $9,120
|
| Settlement date: | Feb. 23
|
| Stock price: | $0.06 at close Feb. 20
|
© 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.
