Hotel Outsource Management International, Inc. (“
”) (OTCBB:HOUM) a multi-national service provider in the hospitality industry, supplying a range of services in relation to computerized minibars that are primarily intended for in-room refreshments announced today that a loan of $2,000,000 which HOMI Industries Ltd (“
”) had received from Tomwood Limited, a BVI company (“Tomwood”) is now being converted by Tomwood into shares of HOMI’s common stock.
On October 5, 2010, HOMI Industries, which is a wholly owned subsidiary of HOMI, entered into a loan agreement with Tomwood. Pursuant to this agreement, Tomwood loaned HOMI Industries $2,000,000. This loan was made available to HOMI Industries in four equal installments of $500,000 each, from October 3, 2010 through July 1, 2011.
The Tomwood loan accrued interest at a rate of 10% per annum. HOMI Industries had agreed to repay this loan in eight consecutive, quarterly payments, commencing as of September 30, 2013 and ending on June 30, 2015.
Pursuant to the October 5, 2010 loan agreement, until September 29, 2013, Tomwood had the right to convert all or any part of the principal sum of its loan to HOMI Industries into shares of the common stock of HOMI. For a conversion occurring no later than September 29, 2012, the conversion would be at a price per share of $0.06, for a maximum of 33,333,333 shares (if the entire loan would be converted during that period). For a conversion occurring between September 29, 2012 and September 29, 2013, the conversion would be at a price per share of $0.08, for a maximum of 25,000,000 shares (if the entire loan would be converted during that period). This loan agreement was amended on September 12, 2011 as follows: for a conversion occurring no later than September 29, 2012, the conversion price per share would be $.04 for a maximum of 50,000,000 shares, and for a conversion occurring between September 29, 2012 and September 29, 2013, the conversion price per share would be $.06 for a maximum of 33,333,333 shares.