Sionix Corp. announced that it has received $1.13 million in funding.
On the same day, the company issued the 6% convertible redeemable notes.
On September 25, 2012, Sionix Corp. closed the transaction. The company further issued convertible notes for gross proceeds of $1,025,000. The transaction saw participation from several accredited investors. The notes bear interest at the rate of 10% per annum beginning as of September 25, 2012, and mature on June 25, 2013. The company paid and the investors received nine months of pre-paid interest on the original principal amount of the notes. The notes are convertible at any time at the option of the holders into the company's common shares at a conversion price based on 80% of the average of the three lowest closing prices for the common shares during the 10 consecutive trading days immediately preceding the conversion request however the conversion price may not exceed $0.04, and may not be lower than $0.02 per share. The company also issued warrants which entitles the investors to purchase 23,125,000 common shares pro rata in proportion to the amount invested, which can be exercised for a period of five years from the closing date, with a fixed exercise price of $0.08 per share. Convertible Capital acted as placement agent to the company in connection with this transaction. The company paid a cash placement fee to Convertible Capital amounting to 8.54% of the gross proceeds of the transaction. The company in total raised $1,125,000.