Company sells 5% debentures; each is convertible at $11.75 per share
By Devika Patel
Knoxville, Tenn., Sept. 24 – Medbox, Inc. negotiated a $2.5 million private placement of convertible debentures on Sept. 19, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The convertibles will be sold in two tranches of $1 million and $1.5 million, and the company has already completed the first tranche.
The 5% debenture is convertible into common shares at $11.75 per share. The conversion price is a 25.67% premium to the Sept. 18 closing share price of $9.35.
The investor will be paid a $125,000 fee.
The West Hollywood, Calif., company offers a machine that dispenses medication to individuals based on biometric identification.
| Issuer: | Medbox, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $2.5 million
|
| Coupon: | 5%
|
| Conversion premium: | 25.67%
|
| Conversion price: | $11.75
|
| Warrants: | No
|
| Fees: | $125,000
|
| Pricing date: | Sept. 19
|
| Settlement date: | Sept. 19 (for $1 million)
|
| Stock symbol: | OTCBB: MDBX
|
| Stock price: | $9.35 at close Sept. 18
|
| Market capitalization: | $247.1 million
|
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