CurAegis Technologies Inc. has received a half-million dollar infusion from one of its directors.
Philip Saunders—a serial entrepreneur and founder of a number of companies, including Genesee Regional Bank, Griffith Energy Inc., TravelCenters of America Inc. and Sugar Creek Corp.—on Aug. 24 invested $500,000 in convertible notes, which have a maturity date of five years and are convertible into common stock at 50 cents per share.
Saunders received 250,000 common stock warrants from CurAegis in exchange for the investment. The company is offering up to $3 million in 6 percent senior convertible promissory notes and warrants in a private placement.
In a Security and Exchange Commission document filed earlier this month, the automotive and related technology company reported second-quarter losses, and its cash on hand was $67,000. Company officials estimated 2017 cash needs would range from $4 million to $4.6 million.
“This raises substantial doubt as to the company’s ability to continue as a going concern,” the SEC document stated.
The SEC filing also noted that if CurAegis was unable to launch and generate sales from its CURA division, the company would need to raise funds to meet its working capital needs. Management said it expected sources for the additional funds would be available through current or future investors, the SEC filing stated.
CurAegis develops and markets advanced technologies in the areas of safety, wellness and power. Its two divisions are focused on commercializing a wellness and safety system and a hydraulic pump.
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