LG Capital, Black Mountain, KBM lend funds for working capital
By Marisa Wong
Madison, Wis., Feb. 10 – Nano Labs Corp. entered into three convertible promissory notes in January. The company received funding under the notes on Jan. 28, according to an 8-K filing with the Securities and Exchange Commission.
The company issued the convertible notes for working capital.
LG Capital note
Nano Labs issued an 8% convertible redeemable note dated Jan. 5 and due Jan. 5, 2016 to LG Capital Funding LLC in the principal amount of $42,000.
LG Capital Funding is entitled at any time after 180 days to convert any or all of the principal face amount then outstanding into shares of Nano Labs common stock. The conversion price will equal 60% of the lowest trading price of the company’s common stock for the 10 trading prior to conversion.
During the first 180 days, the note may be prepaid at 150% of the face amount plus any accrued interest, but the note may not be prepaid after the 180th day.
Black Mountain note
Nano Labs also issued a convertible note dated Jan. 8 to Black Mountain Equities Inc. in the principal amount of $27,500.
There is a $2,500 original issue discount.
The note has a maturity of two years and a one-time interest charge of 10%.
The note may be converted at any time at a conversion price equal to the lesser of $0.02 or 60% of the lowest trading price during the 10 consecutive trading days immediately preceding conversion.
KBM note
In addition, Nano Labs issued a convertible promissory note dated Jan. 14 to KBM Worldwide Inc. in the principal amount of $38,000.
The 8% note matures on Oct. 16, 2015.
The note is convertible beginning 180 days following issuance at a conversion price of 58% times the market price, which is the average of the lowest three trading prices during the 15-trading-day period.
Nano Labs is a Detroit-based development stage company that designs next-generation materials.
| Issuer: | Nano Labs Corp.
|
| Issue: | Convertible promissory notes
|
| Amount: | $107,500
|
| Maturity: | Jan. 5, 2016 for $42,000 note, two years for $27,500 note, Oct. 16, 2015
|
| Coupon: | 8% for $42,000 note, 10% for $27,500 note, 8% for $38,000 note
|
| Warrants: | No
|
| Investors: | LG Capital Funding LLC for $42,000, Black Mountain Equities Inc. for $27,500, KBM Worldwide Inc. for $38,000
|
| Pricing date: | Jan. 5 for $42,000 note, Jan. 8 for $27,500 note, Jan. 14 for $38,000 note
|
| Settlement date: | Jan. 28
|
| Stock symbol: | OTC: CTLE
|
| Stock price: | $0.0149 at close Jan. 27
|
| Market capitalization: | $3.38 million
|
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