Promissory note sold to Siskey Capital, funds general working capital
By Devika Patel
Knoxville, Tenn., Oct. 6 – SpendSmart Networks Inc. completed a $150,000 private placement of a 12% senior convertible promissory note with Siskey Capital, LLC on Oct. 5, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The note matures on March 31, 2016 and has a mandatory conversion feature under which Siskey must apply the principal and interest to a $1.5 million qualified financing by Dec. 31. The note converts to common shares at 80% of the average of the three lowest volume weighted average prices of the stock during the 30 trading days preceding the conversion.
Proceeds will be used for general working capital.
The San Luis Obispo, Calif., company offers a prepaid reloadable MasterCard with parental features ranging from giving parents complete control to make purchases on behalf of their teens to simply monitoring their teen’s purchase transactions.
| Issuer: | SpendSmart Networks Inc.
|
| Issue: | Convertible promissory note
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| Amount: | $150,000
|
| Maturity: | March 31, 2016
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| Coupon: | 12%
|
| Conversion price: | 80% of the average of the three lowest volume weighted average prices of the stock during the 30 trading days preceding the conversion
|
| Warrants: | No
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| Investor: | Siskey Capital, LLC
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| Settlement date: | Oct. 5
|
| Stock symbol: | OTCBB: SSPC
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| Stock price: | $0.46 at close Oct. 2
|
| Market capitalization: | $8.41 million
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