Notes carry 4% coupon, convert at 94.12% premium, fund acquisitions
By Devika Patel
Knoxville, Tenn., Dec. 11 - Computer Vision Systems Laboratories, Corp. said it completed a $20 million private placement of convertible notes with Richmont Capital Partners V LP.
The 4% notes are convertible into common stock at $0.33 per share, which is a 94.12% premium to the Dec. 10 closing share price of $0.17.
Rochon Capital Partners, Ltd., Computer Vision's largest shareholder, plans to surrender the shares Computer Vision would need to issue if Richmont converts the note, the company said in a press release. The total number of outstanding Computer Vision shares will therefore remain unchanged upon conversion.
Proceeds will be used to execute the company's strategy of making acquisitions in the direct selling sector and for other purposes.
Computer Vision, based in Dallas, is a developer of medical products.
| Issuer: | Computer Vision Systems Laboratories, Corp.
|
| Issue: | Convertible notes
|
| Amount: | $20 million
|
| Coupon: | 4%
|
| Conversion price: | $0.33
|
| Conversion premium: | 94.12%
|
| Call: | Yes
|
| Warrants: | No
|
| Investor: | Richmont Capital Partners V LP
|
| Settlement date: | Dec. 11
|
| Stock symbol: | OTCBB: CVSL
|
| Stock price: | $0.17 at close Dec. 10
|
| Market capitalization: | $82.91 million
|
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