SAVEDAILY INC (OTC: SAVY) fell 8.82% to $0.930 in the morning trading hours after the company’s CEO, Jeff Mahony, announced that the company entered into a Financing and Security Agreement with EQ Partners LLC , an Ohio based lender, and that the lender has funded an initial tranche of $750,000, before giving effect to fees and other costs.
The company executed a secured, convertible Cognovit promissory note that allows for conversion of the note to common stock at a conversion price of $0.37 per share, and by a subsequent financing round funded by the lender, or otherwise by funds available to the company. The company is negotiating terms for up to an additional $2.25 million as may be needed at the discretion of SaveDaily after April 1, 2012.
No assurance can be given that the lender and the company will agree on such terms or that the company will receive any additional funding under the Financing and Security Agreement. The company also issued to the lender a warrant that allows the holder, for a period of five years, to acquire up to 750,000 shares of common stock at an exercise price of $.37 per share on terms that also permit cashless exercise.
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