The company intends to close on approximately $1.5 million immediately upon AMEX approval and customary closing conditions, with the balance at the company’s option and subject to stockholder approval.
In the initial closing, the notes are convertible at a price of $0.295 per share. The purchasers will also receive five-year warrants to purchase three million shares of common stock with an exercise price of $0.369 per share.
The company plans on using the proceeds to fund its product development activities, as well as its near-term general working capital requirements. The company believes that the proceeds from the financing will be sufficient to allow the company to fund expenses for the remainder of the 2008 calendar year.