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GENERAL EMPLOYMENT ENTERPRISES INC FILES (8-K) Disclosing Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

August 11, 2014



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.



On August 7, 2014, General Employment Enterprises, Inc. (the "Company") issued a Convertible Note (the "Note") with an original principal balance $632,500 to Brio Capital Master Fund LTD ("Brio"), for a purchase price of $550,000. The Note matures on February 6, 2016, and is payable in thirteen monthly installments of $48,653.85, commencing in the sixth month post closing. Brio has the right, however not the obligation, six months after closing, to convert all or any part of any part of the outstanding Note into the Company's common stock at an initial conversion price of $0.20 per share. After six months from closing, the conversion price will have a one-time reset to the lower of $0.20 or 90% of the average of the 3 lowest closing prices for the previous 10 trading days, subject to a floor of $0.14 per share. The Company can force conversion if the Company's common stock trades at 250% greater than the conversion price for 20 consecutive trading days.

In addition to the Note, the Company issued a Warrant to purchase up to 2,371,875 shares of the Company common stock. The Warrant is exercisable at $0.25 per share, vests 6 months after the closing, and expires 5 years thereafter.


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Source: Edgar Glimpses


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