Investor Kevin Frija also receives warrants; 18% convertibles due 2015
By Devika Patel
Knoxville, Tenn., Oct. 1 - Vapor Corp. settled a $50,000 private placement of 18% senior convertible notes with chief executive officer Kevin Frija on Sept. 28, according to an 8-K filed Monday with the Securities and Exchange Commission.
Each note is due on Sept. 28, 2015 and initially is convertible into common shares at $0.24 per share, which represents a 4.35% premium to $0.23, the Sept. 27 closing share price. The notes are putable after Sept. 27, 2013.
Frija also received warrants for 6,868 shares. Each of the warrants is exercisable at $0.24 until Sept. 27, 2017. The strike price is also a 4.35% premium to the Sept. 27 closing price.
Proceeds will be used for working capital purposes.
Based in Fort Lauderdale, Fla., Vapor makes and sells electronic cigarettes.
| Issuer: | Vapor Corp.
|
| Issue: | Secnior convertible notes
|
| Amount: | $50,000
|
| Maturity: | Sept. 28, 2015
|
| Coupon: | 18%
|
| Conversion price: | $0.24
|
| Put option: | After Sept. 27, 2013
|
| Warrants: | For 6,868 shares
|
| Warrant expiration: | Sept. 27, 2017
|
| Warrant strike price: | $0.24
|
| Investors: | Kevin Frija
|
| Settlement date: | Sept. 28
|
| Stock symbol: | OTCBB: VPCO
|
| Stock price: | $0.23 at close Sept. 27
|
| Market capitalization: | $12.64 million
|
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