GeneSYS ID, Inc. announced that it expects to receive $1 million in funding from Kodiak Capital Group LLC
October 06, 2015
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Rx Safes, Inc. (OTCBB:RXSF) announced that it has entered into an equity purchase agreement with new investor, Kodiak Capital Group for gross proceeds of $1,000,000 on October 7, 2015. Under the equity line agreement, the investor will be obligated to purchase shares based on the investment amount specified in each put notice, which investment amount may be any amount up to $1,000,000 less the investment amount received by us from all prior puts, if any. Puts may be delivered to the investor until the earlier of December 31, 2016 or the date on which the investor has purchased an aggregate of $1,000,000 of put shares. The number of shares that the investor will purchase pursuant to each put notice will be determined by dividing the investment amount specified in the put by the purchase price. The purchase price per share will be set at 75% of the market price for company's common stock with market price being defined as the lowest closing bid price for common stock for any trading day during the five consecutive trading days commencing on the date when investor is notified that its shares have been deposited with its broker. The investor will not purchase shares that would result it in owning more than 9.99% of company's outstanding common shares. The company will issue the securities pursuant to exemption provided under Regulation D.
The company paid a commitment fee in the form of a $60,000 interest free convertible promissory note. The note carries a 12-month term and will mature on October 7, 2016. The note is convertible into shares of the company at a 65% discount to the lowest sales price for the trailing 10 days prior to conversion. The note cannot be converted until after April 7, 2016, if the underlying shares are not registered by November 30, 2015. During the first 180 days following the date of the note, the company has the right to prepay the note with no prepayment penalty.
GeneSYS ID, Inc., formerly RX Safes, Inc., offers various secure fingerprint products and solutions for both the professional and consumer healthcare markets. The Company develops, designs, manufactures and sells finger print activated medication safes and other healthcare storage equipment. It offers autonomous fingerprint medical security solutions for controlled substances. Its products and technology address the economic and social impacts of drug diversion, unauthorized access to medications, prescription drug abuse and poor medication adherence. The Company offers its fingerprint interface as a solution for customers to license and integrate into their own products; jointly develops products with original equipment manufacturer partners to deliver security and accountability to their existing product offerings, and offers customized end user add-on solutions for healthcare facilities, among others. Its product pipeline includes Rx DrugSAFE Pro, Rx DrugSAFE IC and others.