World Moto reported launching a $1 million mezzanine private placement. According to the filing, 50% or $500,000 was sold to two backers three weeks ago. $500,000 in additional funding can be raised before April 2015 based on the placement’s structure. The private placement’s expected net proceeds will amount to $963,000 excluding $38,000 paid in brokerage fees by the company. World Moto is offering unregistered securities for the first time under regulation D of the Securities Act of 1933. According to the 8-K filed in early April, the debentures accrue interest at the rate of 12% annually and have a maturity date of April 4, 2015. They also are convertible into shares of common stock of the Company at any time at the discretion of the Investors at a conversion price equal to the lesser of $0.10 or 70% of the lowest traded price per share of the common stock during the twenty five trading days prior to the date of conversion. The company trades under ticker “FARE” on the OTC market.
The company designs, develops, manufactures, and markets products for the moto taxi market such as fare metering and other communication devices. The company primarily operates in Thailand. The company also focuses on the development of Wheelies, an advertising product that displays static and streaming media on the wheels of motorcycles and automobiles.
The company, headquartered in Pathumthani Thailand, is led by Paul Giles (CEO). World Moto kept its revenues undisclosed.
The executive team includes Chris Ziomkowski and Lisa Ziomkowski-boten.
The board of directors includes Julpas “tom” Kruesopon.
Status: First close
Company: World Moto
Amount offered: $1 million
Amount placed: $500,000
First sale: 04-04-2014
Data as of: 04-28-2014