Can someone explain extactly how this Reg S works?
During April, 1998 the company received $1,000,000 net proceeds from a Regulation S private placement offering of $1,150,000 9%convertible debentures with due dates as follows: 1/3 on June 8, 1998, 1/3 on July 8, 1998 and 1/3 on August 7, 1998. The notes are convertible at the option of the holder into common stock of the Company at 70% of the closing bid price of the Common Stock for the 3) consecutive trading days immediately preceding the date of receipt by the Company of the holder's notice of conversion.
Does CVIA get $1,000,000 cash up front. Then on the dates listed get another 70% of the value for each share they issue on the dates shown? ie... more money coming into the company?
Thanks for the help,
Mike |
