12% notes sold at 3% OID include two-year warrants for 21,800 shares
By Toni Weeks
San Luis Obispo, Calif., Jan. 12 – NAC Global Technologies, Inc. sold $100,000 of 12% original issue discount convertible promissory notes on Jan. 8, according to an 8-K filing with the Securities and Exchange Commission.
The notes have an original issue discount of 3%. They are convertible at a conversion price equal to the lower of $0.50 and 80% of the price at which the company next issues its common stock.
The notes may be prepaid at 125.
Investors also received two-year warrants for 21,800 shares, which are exercisable at $0.63 per share, an 80% premium to the closing share price of $0.35 on Jan. 6.
The company announced on Dec. 15 that it intends to conduct a public sale of its common stock.
The Jacksonville, Fla., company makes and sells harmonic gearing technology for the automation, robotics and defense industries.
| Issuer: | NAC Global Technologies, Inc.
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| Issue: | Original issue discount convertible promissory notes
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| Proceeds: | $100,000
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| Discount: | 3%
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| Coupon: | 12%
|
| Maturity: | Jan. 8, 2016
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| Warrants: | For 21,800 shares
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| Warrant strike price: | $0.63
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| Warrant expiration: | Two years
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| Conversion price: | Lesser of $0.50 or 80% of price at which company next issues common shares
|
| Call: | At 125
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| Settlement date: | Jan. 8
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| Stock symbol: | Nasdaq: NACG
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| Stock price: | $0.35 at close Jan. 6 (last trading day)
|
| Market capitalization: | $10.17 million
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