By Devika Patel
Knoxville, Tenn., June 4 - eDiets.com, Inc. raised $5 million in a private placement of two senior secured notes and warrants with Prides Capital Fund I, LP on May 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The notes bear interest at 18% per year. The first note is for $2.6 million and was issued to Pride on May 30. The second $2.55 million note will be issued on June 30. The notes were sold at a 3% discount.
Interest on the first note will accrue daily and is payable quarterly in cash beginning on June 30.
Prides also received a warrant for 500,000 shares, exercisable at $4.25 per share for 10 years.
eDiets.com, based in Deerfield Beach, Fla., provides online diet and fitness information and advice.
| Issuer: | eDiets.com, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $5 million
|
| Coupon: | 18%
|
| Price: | 97
|
| Yield: | 18%
|
| Warrants: | For 500,000 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $4.25
|
| Investor: | Prides Capital Fund I, LP
|
| Settlement date: | May 30 (for $2,595,000), June 30 (for $2.55 million)
|
| Stock symbol: | Nasdaq: DIET
|
| Stock price: | $4.47 at close May 30
|
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