On the Go Healthcare cuts conversion price on convertible minimum borrowing note

By Laura Lutz

Des Moines, Sept. 28 - On the Go Healthcare, Inc. amended a secured convertible minimum borrowing note that was issued as part of a private placement that settled on July 14, 2005.

The first $150,000 principal amount of the note that is converted after Sept. 24 will have a conversion price of $0.005, lowered from $0.50.

The rest of the note will be convertible at $1.02 per share.

The minimum borrowing note matures on July 14, 2008 and bears interest at Prime rate plus 200 basis points. The interest rate has a floor of 8%.

The note was originally issued in principal amount of $2.5 million. Monthly payments on the note began on Aug. 1, 2005.

The 2005 private placement also included a $500,000 secured convertible term note, a $5 million secured revolving note and warrants for 1.42 million shares.

Laurus Master Fund, Ltd. is the investor.

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

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