By Sheri Kasprzak
New York, March 14 - e-Future Information Technology Inc. wrapped a private placement of senior convertible notes for $10 million.
The company sold the notes to three funds associated with two institutional investors.
The five-year notes bear interest at 3% for the first year, at 5% for the second year, at 7% for the third year and at 10% for the fourth and fifth years.
The notes are convertible into 400,168 common shares at $24.99 each.
The investors also received A warrants for 184,077 shares, exercisable at $28.25 each through Sept. 9, 2012 and B warrants for 230,097 shares, exercisable at $24.99 each for 12 months after the effective date of the registration statement, beginning Sept. 9, 2007.
Westminster Securities Corp. was the placement agent.
Proceeds will be used for working capital and general corporate purposes, which may include strategic acquisitions.
Beijing-based e-Future develops supply chain management software in China.
| Issuer: | e-Future Information Technology Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $10 million
|
| Maturity: | Five years
|
| Coupon: | 3% for the first year, 5% for the second year, 7% for the third year, 10% for the fourth and fifth years
|
| Conversion ratio: | Into 400,168 common shares
|
| Conversion price: | $24.99
|
| Warrants: | A warrants for 184,077 shares; B warrants for 230,097 shares
|
| Warrant expiration: | Sept. 9, 2012 for A warrants; 12 months from the effective date of the registration statement, beginning Sept. 9, 2007, for B warrants
|
| Warrant strike price: | $28.25 for A warrants; $24.99 for B warrants
|
| Placement agent: | Westminster Securities Corp.
|
| Settlement date: | March 14
|
| Stock symbol: | Nasdaq: EFUT
|
| Stock price: | $21.32 at close March 13
|
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