Sale funds business development, working capital, corporate purposes
By Devika Patel
Knoxville, Tenn., Jan. 20 - New Leaf Brands, Inc. said it plans a private placement of units. The deal will raise $1.22 million via agent Hudson Securities, Inc.
The company will sell 48.6 units at $25,000.00 per unit. The units consist of one 10% series K preferred share, a series X warrant, a series Y warrant and a series Z warrant.
Each series X warrant is exercisable for 83,333 shares at $0.15. Each series Y warrant is exercisable for 83,333 shares at $0.15. Each series Z warrant is exercisable for 166,667 shares at $0.15.
The series X warrants expire in five years, the series Y warrants expire 45 days after a registration statement covering the underlying shares becomes effective, and the series Z warrants are exercisable only after the series Y warrants have been fully exercised and expire in five years.
The preferreds are initially convertible at $0.15.
The strike prices and conversion price is a 16.67% discount to the Jan. 19 closing share price of $0.18.
Proceeds will be used for business development, working capital and general corporate purposes.
Based in Orangeburg, N.Y., New Leaf Brands is a beverage manufacturer.
| Issuer: | New Leaf Brands, Inc.
|
| Issue: | Units of one series K preferred share and three warrants
|
| Amount: | $1,215,000
|
| Units: | 48.6
|
| Price: | $25,000.00
|
| Warrants: | Three warrants per unit (for 333,333 shares)
|
| Warrant expiration dates: | Five years (series X and Z), 45 days (series Y)
|
| Warrant strike price: | $0.15
|
| Agent: | Hudson Securities, Inc.
|
| Settlement date: | Jan. 21
|
| Stock symbol: | OTCBB: NLEF
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| Stock price: | $0.18 at close Jan. 19
|
| Market capitalization: | $13.53 million
|
|
|
| Preferreds
|
| Dividends: | 10%
|
| Conversion price: | $0.15
|
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