Units comprised of convertible preferreds with 100% warrant coverage
By Devika Patel
Knoxville, Tenn., Nov. 24 – MamaMancini’s Holdings, Inc. said it raised $1.3 million in the second and final tranche of a $2.3 million private placement of 8% series A convertible preferred stock. The deal priced for $10 million with a $2 million greenshoe and raised $1 million on June 11.
The company sold 46 units of 500 preferreds and 100% warrant coverage at $50,000 per unit.
On June 11, MamaMancini’s issued 20 units.
Each preferred converts to common stock at an initial conversion price of $1.25 per share.
The whole warrants are exercisable at $1.25 for five years.
The warrant strike price and conversion price is a 50.6% premium to the June 10 closing share price of $0.83.
Proceeds will be used for general corporate purposes, including working capital, investor relations, sales and marketing activities, product development, general and administrative matters and capital expenditures.
Based in East Rutherford, N.J., MamaMancini's manufactures and distributes a line of beef meatballs and sauces.
| Issuer: | MamaMancini’s Holdings, Inc.
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| Issue: | Units of 500 series A convertible preferred shares and a 100% warrant coverage
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| Amount: | $2.3 million
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| Units: | 46
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| Price: | $50,000
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| Dividends: | 8%
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| Conversion price: | $1.25
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| Warrants: | 100% warrant coverage
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.25
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| Settlement date: | June 11 (for $1 million), Nov. 24 (for $1.3 million)
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| Stock symbol: | OTCBB: MMMB
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| Stock price: | $0.83 at close June 10
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| Market capitalization: | $13.08 million
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