UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 18,
2014
ITRONICS INC.
--------------------------------------------------------------------------------------------------------------------------------------
Texas
33-18582
75-2198369
(State or other jurisdiction
(Commission File
(IRS Employer
of incorporation)
Number)
Identification No.)
6490 So. McCarran Boulevard, Building C, Suite 23 Reno, Nevada
89509
(Address of Principal Executive Offices)
Zip Code
Registrants telephone number, including area code: (775) 689-7696
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 3.02 Unregistered Sales of Securities
On December 20, 2013 Dr. John W. Whitney, our
President, converted $50,000 in cash loans into restricted common stock of the Company.
Dr. Whitney loaned the funds in 2013. The conversion was at $0.1623 per share, for a total
of 308,071 restricted common shares. The conversion price is computed as the volume
weighted average trading price of the stock for the 10 trading days prior to the
conversion date. In addition, Dr. Whitney received a three year warrant to acquire 154,036
restricted common shares at $0.203 per share. The conversion terms and the warrant are
under the same terms as is presently being offered to accredited investors in a Private
Placement of Common Stock to raise $500,000.
On February 25, 2014 a consultant of the Company
converted $4,650 of fees into restricted common stock. The conversion was at $0.182 per
share, for a total of 25,549 restricted common shares. The conversion price is computed as
the volume weighted average trading price of the stock for the 10 trading days prior to
the conversion date.
On November 18, 2014 Dr. John W. Whitney, our
President, converted $50,266 in cash loans into restricted common stock of the Company.
Dr. Whitney loaned the funds in 2013 and 2014. The conversion was at $0.1226 per share,
for a total of 410,000 restricted common shares. The conversion price is computed as the
volume weighted average trading price of the stock for the 10 trading days prior to the
conversion date. In addition, Dr. Whitney received a three year warrant to acquire 205,000
restricted common shares at $0.153 per share. The conversion terms and the warrant are
under the same terms as is presently being offered to accredited investors in a Private
Placement of Common Stock to raise $500,000.
Beginning with the fourth quarter of 2009, the
Company has three option programs for employees and certain consultants. The first is for
employees and consultants who have deferred a portion or all of their cash compensation,
loaned cash to the Company and its subsidiaries, or have deferred the interest earned on
deferred compensation. The number of restricted common shares underlying the option grants
is 10% of the incremental increase in deferred compensation, loans, or deferred interest
from quarter to quarter. These options have a ten year term and are exercisable at $0.20
per share and have a cashless exercise provision.
The second option category is an incentive option
for certain members of the management team to pursue equity or convertible debt funding
for the Company. The option grants apply to private placements for cash and conversion
into common stock of convertible notes issued for cash. The number of common shares
underlying the grants is a specified percentage of the shares issued in private placements
for cash or upon conversion of convertible notes by non-employee, non-consultant
investors. The respective percentages are Dr. John W. Whitney, President, 20%; Michael C.
Horsley, Controller, 5%; Howland S. Green, Director, 1%; Gregory S. Skinner,
2
Secretary, 1%. These options have a ten year term. The exercise price
of the options is equal to the private placement or note conversion price for each
transaction. The total compensation value under this program is capped at $1 million per
year per person. Compensation value is defined as the estimated fair value of the options
as calculated and expensed for financial reporting purposes.
The third option category is for compensation
purposes. Option or warrant terms are negotiated with individual employees or consultants.
The below table summarizes by category the options
and warrants granted for the fourth quarter of 2013 through the third quarter of 2014.
|
|
Number of
Options and Warrants Granted Based On: |
|
|
Category 1 |
Category 2 |
Category 3 |
|
|
|
Deferred Salary, |
Management |
Negotiated |
Combined |
|
Position |
Loans and Interest |
Options |
Options/Warrants |
Total |
John W. Whitney |
President |
49,384 |
- |
- |
49,384 |
Michael Horsley |
Controller |
19,294 |
- |
- |
19,294 |
Howland S. Green |
Director |
- |
- |
- |
- |
Gregory S. Skinner |
Secretary |
- |
- |
- |
- |
7 other employees |
|
|
|
|
|
and consultants |
Various |
27,908 |
- |
50 |
27,958 |
|
|
|
|
|
|
Totals |
|
96,586 |
- |
50 |
96,636 |
All of the above offerings and sales were deemed to
be exempt under rule 506 of Regulation D and Section 4(2) of the Securities Act of 1933,
as amended. No advertising or general solicitation was employed in offering the
securities. The offerings and sales were made to a limited number of persons, all of whom
were accredited investors, business associates of Itronics Inc. or executive officers of
Itronics Inc., and transfer was restricted by Itronics Inc. in accordance with the
requirements of the Securities Act. In addition to representations by the above-referenced
persons, we have made independent determinations that all of the above-referenced persons
were accredited or sophisticated investors, and that they were capable of analyzing the
merits and risks of their investment, and that they understood the speculative nature of
their investment. Furthermore, all of the above-referenced persons were provided with
access to our Securities and Exchange Commission filings.
After issuance of the restricted common shares
described above, there will be 11,208,284 common shares issued and outstanding.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
ITRONICS INC.
(Registrant)
Date: November 24, 2014
By:
/S/ John W. Whitney
John
W. Whitney
President,
Treasurer and Director
(Principal
Executive and Financial
Officer)
4
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