0% original issue discount debentures sold to single investor in deal
By Devika Patel
Knoxville, Tenn., Sept. 19 – Montalvo Spirits, Inc. arranged a private placement to sell $350,000 of original issue discount convertible debentures with a lone investor on Sept. 15, according to an 8-K filed Friday with the Securities and Exchange Commission. The company has raised $150,000 of the proceeds.
The zero-coupon debentures mature Sept. 12, 2017 and are convertible into common stock at 65% of the lowest closing bid price of the stock for the 20 trading days preceding conversion.
The investor was paid a fee of $5,000 and 400,000 restricted common shares.
The Moorpark, Calif., company develops, markets and distributes alcoholic beverages.
| Issuer: | Montalvo Spirits, Inc.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $350,000
|
| Maturity: | Sept. 12, 2017
|
| Coupon: | 0%
|
| Conversion price: | 65% of the lowest closing bid price of the stock for the 20 trading days preceding conversion
|
| Warrants: | No
|
| Fees: | $5,000 and 400,000 restricted common shares
|
| Pricing date: | Sept. 15
|
| Settlement date: | Sept. 15 (for $150,000)
|
| Stock symbol: | OTCBB: TQLA
|
| Stock price: | $0.07 at close Sept. 12
|
| Market capitalization: | $4.99 million
|
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