By Sheri Kasprzak
Atlanta, March 15 - Health Sciences Group Inc. said it raised $2.4 million in a private placement of series C convertible preferred stock.
The preferreds pay dividends at 8% annually and are convertible into common shares at $1.10 each.
The holders of the preferreds have an option allowing them to purchase up to an additional $1.2 million in preferreds under the same terms.
The investors also received warrants equal to half of the number of common shares issuable upon conversion. The warrants are exercisable at $1.60 each for five years.
Based in Los Angeles, Health Sciences acquires pharmaceutical, nutriceutical and biotechnology companies. It plans to use the proceeds from the offering to launch its line of Swiss Research and Swiss Diet products. The remainder will be used for working capital and for the marketing of its Shugr and Sequestrol products.
| Issuer: | Health Sciences Group Inc.
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| Issue: | Series C convertible preferred stock
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| Amount: | $2.4 million
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| Dividend: | 8%
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| Conversion price: | $1.10
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| AIRs: | For up to $1.2 million in preferreds
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| Warrants: | For up to half of the shares issuable upon conversion
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.60
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| Settlement date: | March 15
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| Stock price: | $1.495 at close March 15
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