Deal sells original issue discount notes to fund corporate purposes
By Devika Patel
Knoxville, Tenn., June 7 – BTCS Inc. agreed to issue up to $375,000 of 5% junior secured convertible promissory notes, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company raised $100,000 at settlement on June 6, selling an initial $125,000 note.
The notes will carry a 20% original issue discount for total proceeds to the company of $300,000.
The convertibles are due on Dec. 5, 2016. They convert to common stock at $0.30 per share. The conversion price is a 150% premium to the June 3 closing share price of $0.12.
Proceeds will be used for general corporate purposes.
The Arlington, Va., company operates a beta e-commerce marketplace that accepts digital currencies.
| Issuer: | BTCS Inc.
|
| Issue: | Junior secured convertible promissory notes
|
| Amount: | $375,000
|
| Maturity: | Dec. 5, 2016
|
| Price: | 20% original issue discount ($300,000)
|
| Conversion price: | $0.30
|
| Conversion premium: | 150%
|
| Warrants: | No
|
| Settlement date: | June 6 ($125,000 of notes for $100,000)
|
| Stock symbol: | OTCBB: BTCS
|
| Stock price: | $0.12 at close June 3
|
| Market capitalization: | $16.95 million
|
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