Notes sold in units with five-year warrants by agent Hudson Securities
By Devika Patel
Knoxville, Tenn., Oct. 15 - New Leaf Brands, Inc. completed a private placement of bridge notes units on Oct. 12, according to an 8-K filed Friday with the Securities and Exchange Commission. The company raised $1.65 million on Sept. 22 and $2.01 million total, with $357,954 raised in the second tranche.
The original issue discount notes mature in 90 days and were sold in units of a $100,000 12% note and warrants for 1,200 common shares. The price per unit is $880. The company issued 1,982,727 warrants in the first tranche and 429,546 warrants in the second, which are each exercisable at $0.25 for five years.
The strike price reflects a 3.85% discount to the Sept. 21 closing share price of $0.26.
No interest will be paid on the notes, but they were sold at a 12% discount.
Hudson Securities, Inc. was the agent.
Based in Orangeburg, N.Y., New Leaf Brands is a beverage manufacturer.
| Issuer: | New Leaf Brands, Inc.
|
| Issue: | Units of $1,000 in original issue discount bridge notes and warrants for 1,200 shares
|
| Amount: | $2,010,227
|
| Maturity: | 90 days
|
| Price: | 12% discount ($880 per unit)
|
| Warrants: | For 1,200 shares per unit (2,412,273 warrants)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.25
|
| Agent: | Hudson Securities, Inc.
|
| Settlement date: | Sept. 22 (for $1,652,273), Oct. 12
|
| Stock symbol: | OTCBB: NLEF
|
| Stock price: | $0.27 at close Sept. 22
|
| Market capitalization: | $14.87 million
|
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