By Sheri Kasprzak
Atlanta, April 11 - Electronic Game Card Inc. said it closed the final $240,000 tranche of its $8,658,000 private placement of two-year convertible promissory notes.
Each $48,000 in principal is convertible into 32,000 shares of series A convertible preferred stock. The preferreds are convertible into one common share at $1.50 each.
The holders of the preferreds will receive dividends of 6% annually.
The investors will also receive one warrant exercisable for one preferred share for every two shares of preferreds into which the notes are initially convertible The warrants are initially exercisable at $1.85 each for five years. Each warrant may alternatively be used to directly acquire one common share on an as-converted-from-preferred-stock basis.
On March 31, the company closed the first tranche of the deal for $8,418,000.
Electronic Game Card, based in New York, markets products to the lottery industry.
Issuer: | Electronic Game Card Inc.
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Issue: | Convertible promissory notes
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Amount: | $240,000 (final tranche)
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Maturity: | March 31, 2007
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Conversion ratio: | Each $48,000 in principal into 32,000 series A preferred stock
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Conversion price: | Series A preferreds convertible into common shares at $1.50 each
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Dividends: | 6% on preferreds
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Warrants: | One warrant exercisable for one preferred share for every two preferred shares into which the notes are initially convertible
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Warrant expiration: | Five years
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Warrant strike price: | $1.85
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Settlement date: | April 6
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Stock price: | $1.96 at close April 6
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