Securities are accompanied by warrants for 25 million common shares
By Devika Patel
Knoxville, Tenn., Nov. 9 - Infusion Brands International, Inc. completed a $2.5 million private placement of its series G convertible preferred stock on Oct. 20, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was arranged on Sept. 22, and the company raised $1.5 million on that date, with a further $1 million raised at settlement.
The company sold 2.5 million preferreds at $1.00 apiece, with 1.5 million preferreds sold in the first tranche and 1 million sold in the second. The 8% preferreds convert into common stock at an initial conversion price of $0.10 per share. The conversion price reflects a 900% premium to the closing share price of $0.01 on Sept. 21.
The preferreds have a mandatory redemption date of June 30, 2013.
The single investor also received series G warrants for 25 million common shares, exercisable at $0.10 for 10 years. The strike price also reflects a 900% premium to the Sept. 21 closing share price.
Infusion Brands, based in Clearwater, Fla., is a consumer products company.
| Issuer: | Infusion Brands International, Inc.
|
| Issue: | Series G convertible preferred stock
|
| Amount: | $2.5 million
|
| Shares: | 2.5 million
|
| Price: | $1.00
|
| Dividends: | 8%
|
| Conversion price: | $0.10
|
| Mandatory call: | On June 30, 2013
|
| Warrants: | For 25 million shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.10
|
| Pricing date: | Sept. 22
|
| Settlement dates: | Sept. 22 (for $1.5 million), Oct. 20 (for $1 million)
|
| Stock symbol: | Pink Sheets: INBI
|
| Stock price: | $0.01 at close Sept. 22
|
| Market capitalization: | $1.83 million
|
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