otc, re DNDT
The s-8 last week was for employee stock options. Today's 8K is interesting. Haven't seen something like this before. Cornell is going to buy up to $10M worth of DNDT (nearly double the current market cap), paying 96% of the latest price. Seems like a big vote of confidence from Cornell?
From today's 8K:
Item 1.01. Entry into a Material Definitive Agreement.
On July 5, 2005, DND Technologies, Inc. (the "Company"), entered into a
Standby Equity Distribution Agreement ("SEDA") with Cornell Capital Partners, LP
("Cornell") dated as of June 17, 2005. Pursuant to the SEDA, the Company may, at
its discretion, periodically sell to Cornell shares of common stock for a total
purchase price of up to $10 million. For each share of common stock purchased
under the SEDA, Cornell will pay the Company 96% of the lowest volume weighted
average price of the Company's common stock, as quoted by Bloomberg, L.P., on
the Over-the-Counter Bulletin Board or other principal market on which the
Company's common stock is traded for the five days immediately following the
notice date. The price paid by Cornell for the Company's stock shall be
determined as of the date of each individual request for an advance under the
SEDA. Cornell will also retain 5% of each advance under the SEDA. Cornell's
obligation to purchase shares of the Company's common stock under the SEDA is
subject to certain conditions, including the Company obtaining an effective
registration statement for shares of the Company's common stock sold under the
SEDA and is limited to $250,000 per five trading days, provided that aggregate
advances in any 30-day period shall not exceed $1 million.
Item 3.02. Unregistered Sales of Equity Securities.
Cornell shall receive 1,142,858 shares of the Company's common stock as
a one-time commitment under the SEDA.
The Company shall issue to Morton Capital, Inc. 47,620 shares of the
Company's common stock as a one-time placement agent fee under a Placement Agent
Agreement relating to the SEDA.
AI
