By Devika Patel
Knoxville, Tenn., Oct. 22 - Natural Health Trends Corp. announced it plans a private placement of convertible debentures and warrants for $3.74 million.
The debentures will have a face amount of $4.25 million and may be converted into 1,496,000 shares.
The debentures will have a coupon of the greater of Libor plus 4% or 10% per year. The notes mature in two years, unless extended by their holders for an additional three years. Under certain conditions, the company may force conversion or redemption.
The financing includes seven-year warrants to buy 1,496,000 shares at $3.52 per share and one-year warrants to buy 1,496,000 shares at $3.52 per share.
Proceeds will be used for additional working capital.
Dallas-based Natural Health Trends is a direct-selling and e-commerce company focused on personal care products.
| Issuer: | Natural Health Trends Corp.
|
| Issue: | Convertible debentures
|
| Principal amount: | $4.25 million
|
| Proceeds: | $3.74 million
|
| Maturity: | Two years
|
| Coupon: | The greater of Libor plus 4% or 10%
|
| Conversion ratio: | Into 1,496,000 shares
|
| Warrants: | Seven-year warrants to buy 1,496,000 shares; one-year warrants to purchase 1,496,000 shares
|
| Warrant expiration: | Seven years, one year
|
| Warrant strike price: | $3.52
|
| Pricing date: | Oct. 22
|
| Stock symbol: | Nasdaq: BHIP
|
| Stock price: | $3.60 at close Oct. 19
|
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