SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 31, 2017
QS Energy, Inc.
(Exact Name of Registrant as Specified in Charter)
(State or other jurisdiction
|(Commission File Number)||
23902 FM 2978
|(Address of principal executive offices)||(Zip Code)|
Registrant’s telephone number, including area code: (805) 845-3581
|(Former name or former address, if changed since last report)|
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:
|o||Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)|
|o||Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)|
|o||Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))|
|o||Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 193 3 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240. 12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
|Item 1.01||Entry Into a Material Definitive Agreement|
|Item 3.02||Unregistered Sales of Equity Securities|
From January 1, 2017, through May 31, 2017, the Company issued and sold to accredited US investors and non-U.S. investors an aggregate of $1,616,077 Convertible Promissory Notes (the “Notes”) and warrants to purchase an aggregate of 16,160,770 shares of common stock (the “Warrants”). The Company received proceeds from the closing of the private placement of $1,469,161, which funds were used, and are being used, for general corporate purposes and working capital.
The Notes are due twelve (12) months from their respective issuance dates (the “Maturity Date”). The Notes do not bear interest and were issued in the face amount equal to 110% of the purchasers’ commitments. The Notes are convertible into shares of the Company’s common stock at a rate of $0.05 per share. If the Notes are not paid in full by the Maturity Date, the balance remaining on the Maturity Date shall be increased by 10% and the Company shall be required to pay interest at a rate of 10% per annum thereon until all sums thereunder are paid in full.
From February 17, 2017, through June 2, 2017, the Company issued 17,090,940 shares of its common stock on the conversion of Notes in the aggregate amount of $854,547. As of June 2, 2017, the outstanding balance due on the Notes was $761,530.
The Warrants are exercisable into shares of the Company’s common stock for a term of one (1) year at an exercise price of $0.05 per share. The Warrants also contain provisions that protect the holders against dilution by adjustment of the conversion price in certain events involving a reduction or increase in the Company’s shares.
The offering was made to non-U.S investors and to U.S. “accredited investors,” as the term is defined in Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and were made without general advertising or solicitation. The securities sold in the offering were not registered under the Securities Act, or the securities laws of any state, and were offered and sold in reliance on exemptions from registration including the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Regulation S promulgated under the Securities Act, and corresponding provisions of state securities law, which, respectively, exempt transactions by an issuer not involving any public offering or transactions with non-U.S. Investors.
|Item 9.01.||Financial Statements and Exhibits.|
|10.1||Form of Securities Purchase Agreement, Form of Convertible Promissory Note, Form of Common Stock Purchase Warrant|
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.
|Date: June 6, 2017||QS ENERGY, INC.
|By:||/s/ MICHAEL MCMULLEN|
|Title:||Chief Financial Officer|