Offer also includes seven-year warrants; Monarch Capital is the agent
By Devika Patel
Knoxville, Tenn., April 21 - Gulfstream International Group, Inc. settled a second $500,000 tranche of a $5 million private placement of 9% subordinated convertible promissory notes on April 15, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company sold $1.3 million of notes on Feb. 28.
The one-year note is initially convertible into common shares at $0.30 per share, which represents a 28.57% discount to $0.42, the Feb. 25 closing share price.
The investors also received seven-year warrants for 1,916,664 common shares in the first tranche and warrants for 833,332 shares in the second as part of the deal's 50% warrant coverage. The warrants are each exercisable at $0.30, also a 28.57% discount to the Feb. 25 closing share price.
The ongoing placement is expected to settle July 31; it is being conducted by Monarch Capital Group LLC. SAIL Venture Partners, LP bought all $500,000 of the notes in the second tranche.
Based in Costa Mesa, Calif., CNS Response develops and commercializes new indications of approved drugs and drug candidates.
| Issuer: | CNS Response, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $5 million
|
| Maturity: | One year
|
| Coupon: | 9%
|
| Conversion price: | $0.30
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.30
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| Agent: | Monarch Capital Group LLC
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| Investor: | SAIL Venture Partners, LP (for $500,000)
|
| Settlement date: | Feb. 28 (for $1.3 million), April 15 (for $500,000)
|
| Stock symbol: | OTCBB: CNSO
|
| Stock price: | $0.30 at close Feb. 28
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