Tel Instrument Electronics Corp. (TIK) said Wednesday that it has secured an equity purchase commitment for up to $500,000 in total from the Chief Executive Officer, a director and an affiliate to the company to be called upon at the company's discretion.
The company noted that the stock subscription agreements provide for the sale of up to $500,000 of newly issued restricted shares at a price of $3.60 per share, the closing average price of Tel's shares following the signing of the individual stock subscription agreements.
The company has called upon a total of $300,000, and the it will issue 83,333 shares of restricted stock in exchange for this amount to the three investors with an additional $200,000 of stock available to be issued at the company's discretion.
These stock purchase agreements expire on December 31. This financing will be used for general business purposes.
The price was determined to be fair by a Special Valuation Committee of the Board, composed of Robert Walker and Robert Rice, who did not participate in this share purchase.
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