Cybeats Technologies Corp (OTC:CYBCF) Stock Falls After Private Placement
On Wednesday, a significant number of companies entered the news cycle, and one of those was Cybeats Technologies Corp. (OTC:CYBCF). On December 20, the company announced that it was going to have a private placement of as many as 1500 debenture units in its capital.
It was revealed that each debenture unit would be priced at $1000 so as to generate gross proceeds to the tune of $1,500,000. In the news release, Cybeats Technologies Corp. revealed that it was going to deploy the net proceeds from the private placement for general corporate and working capital purposes.
A debenture unit would be made up of $1000 in the form of the principal amount in unsecured convertible debentures and 3333 common share purchase warrants. The holder of a warrant would be entitled to pick up one common share in the company for the exercise price of $0.40 for a period of 24 months from the date of issuance.
The principal amount related to the debentures and any unpaid and accrued interest would mature and would become due and payable in the form of cash in 24 months from the issuance date. The principal amount connected to the debentures would accrue interest at a rate of 12% a year since the issuance date.
The interest would be payable every 12 months in the form of cash. It should, however, be noted that the principal amount pertaining to the debentures would be convertible into common shares in Cybeats Technologies Corp.’s capital, in part or in whole, as per the option exercised by the holder. The holder would be able to opt for the conversion at any time after the date of issuance, and the conversion price would be $0.30 per share. Upon the closing of the placement, the securities would be subject to a hold period of four months and a day.
