It's not a coincidence that the price was .65. This paper could come to the market later this year.
On January 21, 2015, STW Resources Holding Corp. (the "Company"), entered into a Securities Purchase Agreement with 3 accredited investors (the "Purchase Agreement") pursuant to which the Company received aggregate gross proceeds of $750,000 and closed the related private offering (the "Offering"), pursuant to which it sold 5% Convertible Promissory Notes of the Company, in the form attached hereto as Exhibit 4.1, in the aggregate principal amount of $275,000.00 each (each a "Note" and collectively the "Notes") (the Notes were sold at a 10% original issue discount). The Notes are convertible into shares of common stock, $0.001 par value per share, of the Company (the "Common Stock") at an initial conversion price of $0.65 per share, subject to adjustment as set forth in the Note (the "Conversion Price"); the Notes also maintain a 4.99% beneficial ownership cap on the number of shares issuable to each Note holder upon conversion. The maturity date of the Notes is July 21, 2015. The Notes bear an interest on the unpaid principal amount at the rate of five percent (5%) per annum (the "Interest") from the date of issuance until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. Notwithstanding the foregoing, upon the occurrence of an Event of Default as defined in such Note, the principal amount of each Note shall automatically increase by $100,000.00 to a total of $375,000.00 and the conversion price shall adjust as detailed in the Note. Additionally, interest shall increase to fifteen percent (15%) per annum if payment is not made when due under the Note. The Company may prepare the Note following its five month anniversary on the terms set forth in the Note at the rate of 125% of the then outstanding balance of the Note. Under the terms of the Note, the Company shall not effect certain corporate and business actions during the term of the Note, although some may be done with proper notice.
The Company will also issue 100,000 restricted shares of Common Stock to each investor as additional consideration for the purchase of the Note (the "Issuance Shares").
this has been a low volume run so I think it's just a few buyers who have done the math and are nibbling at Qfor. The market will be skeptical until QFOR shows some revs that jibe with the company forecast of $2-6/life/month. The first company to signup was probably given a sweetheart deal to be the first big signee so I don't expect big revs but the potential is certainly there. I expect the revs per life to trend upwards and QFOR should be able to book significant profits, even at $2/life.