NEW YORK, July 14, 2011 /PRNewswire/ --
SPO (SPOM.OB), a leading developer of biosensor and microprocessor technologies for consumer wellness applications, today announced that it has entered into an Investment Agreement with Dutchess Opportunity Fund II, LP for a US$5 Million equity line facility.
Under the terms of the signed agreement, for a period of 36 months the Company has the option to sell and Dutchess the obligation to purchase common stock at a 6% discount to a calculated volume weighted average market price. In connection with establishing the equity line, the Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission to register the resale by Dutchess of any shares issued to it under the equity line. Subject to the effectiveness of the registration statement and the satisfaction of other customary conditions, the Company may draw on the finance facility on a needed basis.
Michael Braunold, President and Chief Executive Officer of SPO commented, "We are pleased to enter into this financing agreement offering SPO a flexible infusion of cash with a well-established firm such as Dutchess. It is one of several financing strategies that will be pursued as we launch our innovative wellness products into the consumer mass-market environment. Dutchess has the track record and experience in the industry and has been a leader in providing equity lines for over 10 years which contributed significantly to selecting them as our partner."
Chris Quin, Vice President of Business Development of Dutchess,
stated; "After reviewing the Company, we believe in Management's
efforts to grow SPO and this facility provides inexpensive and
flexible access capital. Regardless of the ever-tightening capital
markets, we believe that SPO represents a compelling investment for
our fund based on its exciting wellness product line. The line will
allow Management the flexibility of raising capital
|SOURCE SPO Global|
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