Morning Sergio,I forgot to mention, USXX got $5M in financing(letter of intent) US Technologies(and the price has held nicely). This excerpt will also illustrate the difference in the wording of these Convertible Preferred placements..[note: the conversion price restrictions]
"MARIETTA, Ga., May 21 /PRNewswire/ -- U.S. Technologies Inc. (OTC-Bulletin Board:
USXX) (the ''Company'') today announced that it has entered into a Letter of Intent with U.S.
Viewing Corporation, whereby U.S. Viewing Corporation and/or certain affiliates and associates
will invest, subject to the satisfactory completion of financial and legal due diligence, and the
execution of definitive documentation, $5,000,000 in the Company, through its purchase of
500,000 shares of the Company's Series A convertible preferred stock (the ''convertible preferred
stock'') and 500,000 common stock warrants exercisable at $1.00 per share.
Under the terms of the Letter of Intent, the convertible preferred stock will carry a 9% cumulative
dividend, payable in cash or in shares of the Company's common or convertible preferred stock,
and may be converted into the common stock of the Company, at the option of the holder,
beginning 180 days following the date of issuance, at a fifteen-day average closing bid price, with a
minimum conversion price of $.70 per share and a maximum conversion price of $1.00 per share.
The Company will have the right, subject to the holders' rights to convert the convertible preferred
stock to common shares, to redeem the preferred stock at its stated value of $10.00 per share (plus
all accrued and unpaid dividends) at any time after the common stock of the Company trades at
$3.00 or more per share for twenty consecutive trading days."
biz.yahoo.com
DD
I have to say, Ken Smith's(CEO) past financing experience has payed off in previous placements,as well as I believe this one will. He does know how to write these things... |
