Southridge Partners II is investor for both deals
By Angela McDaniels
Tacoma, Wash., March 26 - Net Savings Link, Inc. sold a $75,000 secured convertible promissory note to Southridge Partners II, LP on March 9 and entered into an equity purchase agreement with the investor.
Under the purchase agreement, the company will sell up to $20 million of common stock to Southridge from time to time at a 9% discount to its common stock's market price.
The agreement ends March 8, 2014, according to an 8-K filing with the Securities and Exchange Commission.
The note is due June 23, 2012 and carries an 8% coupon. It is convertible into restricted shares at a 40% discount to the market price.
The note is callable at 120% of par during the first 90 days and at 125% of par on days 91 through 180. If the note is not paid on June 23, the company will pay 130% times the sum then due.
David Saltrelli, the company's president and chief executive officer, pledged 2.5 million of his shares as collateral to guarantee the note.
The investor will receive a warrant for 1.5 million shares with an initial exercise price of $0.05 per share. Southridge may elect a cashless exercise. The strike price is a 13.8% discount to the company's closing share price on March 9, $0.058.
Net Savings Link is a development-stage company based in Clearwater, Fla. It operates as an online provider of discount offers and savings opportunities through an electronic membership participation program.
| Issuer: | Net Savings Link, Inc.
|
| Issue: | Secured convertible promissory note, equity purchase agreement
|
| Amount: | $20,075,000
|
| Agent: | Non-brokered
|
| Investor: | Southridge Partners II, LP
|
| Stock symbol: | OTCBB: NSAV
|
| Stock price: | $0.038 at close March 26
|
| Market capitalization: | $7.67 million
|
|
|
| Convertible note
|
| Amount: | $75,000
|
| Maturity: | June 23, 2012
|
| Coupon: | 8%
|
| Call option: | 120% of par during first 90 days and 125% of par on days 91 through 180
|
| Warrant: | For 1.5 million shares
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| Warrant strike price: | $0.05
|
| Pricing date: | March 9
|
| Settlement date: | March 26
|
|
|
| Equity purchase agreement
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| Amount: | Up to $20 million
|
| Price: | 9% discount to market price
|
| Expiration: | March 8, 2014
|
| Agreement date: | March 9
|
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