Bond Laboratories, Inc. yesterday detailed the completion of equity financing which should help position the company for continued growth by providing additional resources and stability. With the financing now in place, the company will be able to continue its aggressive business strategies with the intentions of operating “in the black” next year.
A portion of the new financing deal included the company raising additional equity capital through a private placement with net proceeds of $1.25 million through the issuance of a newly-created Series C Convertible Preferred Stock.
Highlights on the financing included:
• Holders representing more than 50% of the issued and outstanding shares of the company’s Series B 10% Cumulative Perpetual Preferred Stock agreed to exchange such shares for shares of the Company’s common stock at a price equal to $0.25 per share.
• Bridge Debt was eliminated as all outstanding bridge notes (aggregate principal amount of $424,000) were converted into shares of common stock of the Company at a fixed conversion price of $0.20 per share.
• Additional cash that can be used now was generated through an amendment to the outstanding note connected to the NDS Nutrition purchase in October 2008 which extended the maturity date of the original note an additional twelve months to December 31, 2011 with eight monthly payments due throughout 2011 to constitute payment in full.
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