On the Go Healthcare cuts conversion price on convertible term note

By Laura Lutz

Des Moines, July 17 - On the Go Healthcare, Inc. lowered the conversion price of a $500,000 secured convertible term note that was issued as part of a private placement that settled on July 14, 2005.

The note is now convertible at $0.005 per share and callable at 130% of the principal amount plus interest.

The company also modified the call provisions of the note. It may now be prepaid at any time at 130% of the principal amount plus interest. Previously, the call price was 120% of the principal amount plus interest.

Under the original terms, the note was convertible at $1.02 per share.

On the Go revised the note on Jan. 24, 2006, lowering the call price to $0.50 per share and the call price to 120% of the principal amount plus interest.

The note was further revised on May 16, 2006, lowering the conversion price to $0.14 for $85,000 principal amount of the note.

The fixed conversion price was lowered to $0.14 for the entire principal amount on June 5, 2006.

The note matures on July 14, 2008 and bears interest at Prime rate plus 200 basis points, with an 8% floor.

Laurus Master Fund, Ltd. is the investor. The full placement size was $5.5 million and included the term note, a secured convertible minimum borrowing note, a secured revolving note and warrants for 1.42 million shares.

Based in Concord, Ont., On the Go acquires internet technology companies.

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