18-month notes sold in two tranches with a variable conversion price
By Devika Patel
Knoxville, Tenn., Jan. 13 – Q BioMed Inc. settled a $385,000 tranche of a private placement of 10% convertible promissory notes with two investors on Nov. 12 and Dec. 15, according to an 8-K filed Wednesday with the Securities and Exchange Commission. A first tranche of $240,000 convertibles settled with eight investors from Oct. 30 through Dec. 19.
The notes are due in 18 months, and the first-tranche notes are convertible into common shares at a price equal to a 40% discount to the average closing price for the previous 10 days, with a floor price of $1.25. The second-tranche convertibles are convertible into shares at a price equal to a 40% discount to the average closing price for the previous 10 days, with a floor price of $1.55.
On Jan. 8, the company also agreed to sell up to $415,000 of common stock on the same terms as the second-tranche notes until June 8.
The biomedical company is based in New York.
| Issuer: | Q BioMed Inc.
|
| Issue: | Convertible notes
|
| Amount: | $625,000
|
| Maturity: | 18 months
|
| Coupon: | 10%
|
| Conversion price: | A 40% discount to the average closing price for the previous 10 days, floor of $1.25 for $240,000 of notes, floor of $1.55 for $385,000 of notes
|
| Warrants: | No
|
| Settlement dates: | Oct. 30 through Dec. 19 (for $240,000), Nov. 12 and Dec. 15 (for $385,000)
|
| Stock symbol: | OTCBB: QBIO
|
| Stock price: | $2.63 at close Oct. 29
|
| Market capitalization: | $26.72 million
|
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