By Sheri Kasprzak
Atlanta, Jan. 3 - Systems Evolution Inc. said it closed a private placement for $1.5 million.
The company sold callable secured convertible notes to institutional and accredited investors.
The notes bear interest at 8% annually and are convertible into common shares at the lesser of $0.13 or 50% of the lowest three trading prices during the 20-day period ending one day before the conversion notice.
The notes are due Dec. 31, 2006.
The investors in the offering also received warrants for 4.5 million shares at $0.08 each for five years.
The notes are callable if the company has sufficient shares available for conversion and if the company's stock trades at or below $0.13 per share. The prepayment rate is 130% for the first 30 days after issuance, 140% from the 31st day through the 60th day and 150% after the 60th day.
Based in Houston, Systems is an internet technology consultancy company.
| Issuer: | Systems Evolution Inc.
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| Issue: | Callable secured convertible notes
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| Amount: | $1.5 million
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| Maturity: | Dec. 31, 2006
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | The lesser of $0.13 or 50% of the lowest three trading prices for 20 days before conversion
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| Call: | If the company has enough shares for conversion and if the shares trade at or below $0.13 per share
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| Warrants: | For 4.5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.08
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| Settlement date: | Dec. 31
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| Stock price: | $0.09 at close Dec. 31
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