Investors also receive warrants; 18% convertibles due June 18, 2015
By Devika Patel
Knoxville, Tenn., June 22 - Vapor Corp. settled a $300,000 private placement of 18% senior convertible notes on June 19, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes are due on June 18, 2015 and initially are convertible into common shares at $0.213 per share, which represents a 3.18% discount to $0.22, the June 18 closing share price and 110% of the 30-day weighted average closing price per share of the stock on June 19, the company said in the filing. The notes may be redeemed.
The investors also received warrants for 46,512 shares. Each of the warrants is exercisable at $0.213 until June 18, 2017. The strike price is also a 3.18% discount to the June 18 closing price.
Chief executive officer Kevin Frija, chief financial officer Harlan Press and stockholder Doron Ziv were the investors; each purchased $100,000 of notes and warrants for 15,504 shares.
Proceeds will be used for working capital purposes.
Based in Fort Lauderdale, Fla., Vapor makes and sells electronic cigarettes.
| Issuer: | Vapor Corp.
|
| Issue: | Senior convertible notes
|
| Amount: | $300,000
|
| Maturity: | June 18, 2015
|
| Coupon: | 18%
|
| Conversion price: | $0.213
|
| Call: | Yes
|
| Warrants: | For 46,512 shares
|
| Warrant expiration: | June 18, 2017
|
| Warrant strike price: | $0.213
|
| Investors: | Kevin Frija (for $100,000), Harlan Press (for $100,000) and Doron Ziv (for $100,000)
|
| Settlement date: | June 19
|
| Stock symbol: | OTCBB: VPCO
|
| Stock price: | $0.22 at close June 18
|
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