Cybeats Technologies Corp (OTC:CYBCF) Stock Falls After Private Placement

News about private placements is almost always greeted with considerable interest by investors, and hence it is likely that Cybeats Technologies Corp. (OTC:CYBCF) could come on to focus among investors today. The company announced yesterday that it had decided to raise its previously announced non-brokered private placement by a maximum of 2025 debenture units in Cybeats Technologies’ capital.

The company would offer the debenture units for the price of $1000 each so as to generate gross proceeds to the tune of $2025,000. In the news release, the company also announced that it would use the proceeds from the private placement for general corporate and working capital purposes. It was announced that each debenture would comprise $1000 in principal in the form of unsecured convertible debentures and a total of 3333 common share purchase warrants. The holder of a warrant would be entitled to pick up one common share in the company’s capital for the price of $0.50 a share up until 24 months since the date of issuance.

The principal amount with regards to the debentures and the accrued interest, as well as any unpaid interest, would mature and become due 24 months from the date of issuance. The principal amount that is going to be owed under the debentures since the date of issuance would accrue interest at the rate of 12% a year, and it would be payable each month in cash.

However, it was also revealed that the principal amount connected to the debenture would be convertible into common shares in Cybeats Technologies if the holder so wished, in part or in whole. The conversion could be made at any time since the date of issuance at the rate of $0.30 per share. It might be a good time for investors to consider adding Cybeats Technologies stock to their watch lists.