Company sells 1.5 million preferreds and 6 million seven-year warrants
By Devika Patel
Knoxville, Tenn., June 10 - Zurvita Holdings, Inc. completed a $1.5 million private placement of series C convertible preferred stock on June 9, according to an 8-K filed Friday with the Securities and Exchange Commission. The proceeds were received in two tranches, with the company receiving $1 million on March 16 and $500,000 on May 3.
The 1.5 million preferreds are initially convertible into common stock at $0.25 per share.
Vicis Capital Master Fund, the lone investor, also received warrants for 6 million common shares, which are exercisable at $0.25 for seven years.
The warrant strike price and the preferreds conversion price are a 150% premium to the March 15 closing share price of $0.10.
The direct sales marketing company is based in Houston.
| Issuer: | Zurvita Holdings, Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $1.5 million
|
| Shares: | 1.5 million
|
| Price: | $1.00
|
| Conversion price: | $0.25
|
| Warrants: | For 6 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.25
|
| Investor: | Vicis Capital Master Fund
|
| Settlement date: | March 16 (for $1 million), May 3 (for $500,000)
|
| Stock symbol: | Pink Sheets: ZRVT
|
| Stock price: | $0.10 at close March 15
|
| Market capitalization: | $2.46 million
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