KNOS OTCBB Current .145 Next week's offering .10
In October 2004, Kronos entered into agreements for up to $20.5 million in
equity and equity backed debt financing from Cornell Capital Partners. Kronos
executed an Equity Investment Agreement to secure $500,000 through the sale of 5
million unregistered shares of Kronos common stock.
Cornell Capital Partners
committed to provide $4 million pursuant to two Equity Backed Promissory Notes,
which will be funded as follows: $2 million upon filing a Registration Statement
and $2 million upon the SEC declaring the Registration Statement effective.
Kronos executed a Standby Equity Distribution Agreement for $20 million of
funding which Kronos has the option to drawdown against in increments as large
as $1.5 million over the next twenty four months. Kronos intends to use the
proceeds under the the Standby Equity Distribution Agreement to repay the Equity
Backed Promissory Notes. Kronos expects to receive $0.5 million in funding upon
the amendment of the HoMedics debt financing, $2 million over the next 45 - 90
days and an additional $2 million over the next 90 - 120 days under these
agreements.
but first $1 million goes to KNOS management
As of June 30, 2004, the Company has outstanding obligations for past
compensation to the remaining officers and directors of $1,139,903. These unpaid
amounts currently accrue interest at the rates between 17% and 12% per annum.
On March 31, 2004, we entered into Promissory Notes with Daniel R. Dwight and
Richard F. Tusing in exchange for past due compensation, expenses and interest
do and payable for $363,139 and $485,883. The Notes bear a simple interest rate
1% per month and call for aggregate monthly principal and interest payments
$6,718 and $8,989, respectively, for each month in which the Company's beginning
cash balance equals or exceeds $200,000. Subject to certain conditions,
including default, these notes become payable in full. In the event of a debt or
equity financing other than from Fusion Capital |
