By Sheri Kasprzak
New York, Nov. 28 - Fortune Diversified Industries, Inc. said it closed a $7.5 million private placement of a convertible term note with Laurus Master Fund, Ltd.
The variable-rate note bears interest at Prime rate plus 300 basis points with a 9.5% floor and is convertible into common shares at $5.50 each. The note is due on Nov. 21, 2008.
The investor received warrants for up to 272,727 shares, exercisable at $6.60 each for five years.
Proceeds will be used for working capital.
The note may be prepaid at 130% of the principal plus interest.
Based in Indianapolis, Fortune Diversified invests in manufacturing, wireless infrastructure and other companies
| Issuer: | Fortune Diversified Industries, Inc.
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| Issue: | Convertible term note
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| Amount: | $7.5 million
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| Maturity: | Nov. 21, 2008
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| Coupon: | Prime rate plus 300 basis points, 9.5% floor
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| Conversion price: | $5.50
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| Call: | May be prepaid at 130% of principal plus interest
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| Warrants: | For 272,727 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $6.60
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| Investor: | Laurus Master Fund, Ltd.
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| Settlement date: | Nov. 21
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| Stock price: | $4.86 at close Nov. 21
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