Investors also receive three-year warrants, each exercisable at $0.10
By Devika Patel
Knoxville, Tenn., Aug. 31 - H & H Imports, Inc. concluded a $1.8 million private placement of senior convertible debentures with six investors on Aug. 29, according to an 8-K filed Wednesday with the Securities and Exchange Commission. National Securities Corp. was the agent.
The 12% debentures mature March 1, 2012 and are initially convertible into common stock at $0.10 per share. The conversion price is a 42.86% premium to $0.07, the Aug. 28 closing share price.
Principal and accrued interest will automatically convert into equity securities identical to those sold to investors in the company's next offering of at least $4 million at a conversion price equal to 80% of the price paid by investors in the financing
Investors also received three-year warrants for 18 million shares. The warrants are exercisable at $0.10, which is also a 42.86% premium to the Aug. 28 closing price.
Proceeds will be used for product inventory.
The Plantation, Fla., company designs, creates and produces direct response marketing campaigns in the form of infomercial programming.
| Issuer: | H & H Imports, Inc.
|
| Issue: | Senior convertible debentures
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| Amount: | $1.8 million
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| Maturity: | March 1, 2012
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| Coupon: | 12%
|
| Conversion price: | $0.10
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| Warrants: | For 18 million shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.10
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| Agent: | National Securities Corp.
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| Settlement date: | Aug. 29
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| Stock symbol: | OTCBB: HNHI
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| Stock price: | $0.07 at close Aug. 29
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