Published on 9/30/2015 in the Prospect News PIPE Daily.
CNS Response settles $3 million private placement of convertibles
Company offers 5% secured promissory notes due March 2016 in deal
By Devika Patel
Knoxville, Tenn., Sept. 30 – Gulfstream International Group, Inc. completed a $350,000 final tranche of a $3 million private placement of 5% secured convertible promissory notes on Sept. 24, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal raised $1.75 million between Sept. 22, 2014 and Jan. 8, 2015 and took in $315,000 on March 17 and March 18.
The convertible is due on March 21, 2016. The note is convertible into common stock at a conversion price equal to the lesser of $0.25 or 70% of the lowest price of the stock sold by the company, with a floor of $0.10 per share.
In the first closings, lead investor RSJ Private Equity uzavreny investicni fond AS invested $750,000, The Tierney Family Trust invested $200,000, director John Pappajohn, invested $200,000 and Oman Ventures invested $200,000. In the March tranche, the Tierney Family Trust invested $115,000, director John Pappajohn invested $100,000 and the Follman Family Trust invested $100,000.
Based in Costa Mesa, Calif., CNS Response develops and commercializes new indications of approved drugs and drug candidates.
| Issuer: | CNS Response, Inc.
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| Issue: | Secured convertible promissory notes
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| Amount: | $3 million
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| Maturity: | March 21, 2016
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| Coupon: | 5%
|
| Conversion price: | The lesser of $0.25 or 70% of the lowest price of the stock sold by the company, with a floor of $0.10 per share
|
| Warrants: | No
|
| Investors: | RSJ Private Equity uzavreny investicni fond AS (lead, for $750,000) the Tierney Family Trust (for $315,000), John Pappajohn, (for $300,000), Oman Ventures (for $200,000), the Follman Family Trust (for $100,000)
|
| Settlement dates: | Sept. 22 through Sept. 26, 2014 (for $1.55 million), Jan. 8 (for $200,000), March 17 and March 18 (for $315,000), Sept. 24 (for $350,000)
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| Stock symbol: | OTCBB: CNSO
|
| Stock price: | $0.24 at close Sept. 19, 2014
|
| Market capitalization: | $6.1 million
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