Original issue discount debentures sold to Hillair for $2 million
By Devika Patel
Knoxville, Tenn., Nov. 14 - First Choice Healthcare Solutions, Inc. settled a private placement of $2.32 million of original issue discount convertible debentures on Nov. 8, according to an 8-K filed Thursday with the Securities and Exchange Commission. The debentures were sold to Hillair Capital Investments LP for $2 million.
The 8% debentures are initially convertible into common stock at $1.00 per share. The debentures may be prepaid at 120 and mature on Dec. 28, 2013, with a possible extension through Nov. 1, 2015.
Hillair also received warrants for 2.32 million shares. The warrants are each exercisable at $1.35 until June 27, 2017.
The strike price and conversion price are 10% and 33.33% discounts, respectively, to the Nov. 7 closing share price of $1.50.
Based in Melbourne, Fla., First Choice develops and acquires medical specialty units.
| Issuer: | First Choice Healthcare Solutions, Inc.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $2.32 million
|
| Maturity: | Dec. 28, 2013, possible extension through Nov. 1, 2015
|
| Coupon: | 8%
|
| Price: | $2 million
|
| Conversion price: | $1.00
|
| Call: | At 120
|
| Warrants: | For 2.32 million shares
|
| Warrant expiration: | June 27, 2017
|
| Warrant strike price: | $1.35
|
| Investor: | Hillair Capital Investments LP
|
| Settlement date: | Nov. 8
|
| Stock symbol: | OTCBB: FCHS
|
| Stock price: | $1.50 at close Nov. 7
|
| Market capitalization: | $21.84 million
|
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