By Sheri Kasprzak
Atlanta, March 29 - IGIA Inc. said it has closed a private placement of secured convertible notes for $3 million.
The company sold the notes to New Millennium Capital Partners II LLC, AJW Qualified Partners LLC, AJW Offshore Ltd. and AJW Partners LLC.
The notes bear interest at 8% annually, mature in three years and are convertible into common shares at the lesser of $0.04 or half of the average three lowest intraday trading prices for 20 days before conversion.
IGIA may prepay the notes if there are sufficient shares for conversion and if its market price is at or below $0.06 per share.
The investors also received warrants for 6 million shares, exercisable at $0.03 each for five years.
The company raised the funds to provide a loan to subsidiary Tactica International Inc. as a debtor in possession financing or exit financing. A bankruptcy court, according to a form 8-K from the Securities and Exchange Commission, is reviewing Tactica's Chapter 11 filing.
Based in New York, IGIA is a direct marketer of personal care products.
| Issuer: | IGIA Inc.
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| Issue: | Secured convertible notes
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| Amount: | $3 million
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| Maturity: | Three years
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | The lower of $0.04 or 50% of the average three lowest intraday trading prices
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| Call: | May prepay if market price is below $0.06 per share and sufficient shares are available for conversion
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| Warrants: | For 6 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.03
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| Investors: | New Millennium Capital Partners II LLC, AJW Qualified Partners LLC, AJW Offshore Ltd. and AJW Partners LLC
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| Settlement date: | March 23
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| Stock price: | $0.03 at close March 23
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