By Devika Patel
Knoxville, Tenn., March 30 - NutraCea arranged a $1 million private placement of a convertible note on March 29, according to a term sheet attached to an 8-K filed Monday with the Securities and Exchange Commission.
Cranshire Capital, LP is the investor.
The 8% note will mature in seven months. It is convertible at a 20% premium to the company's share price on the settlement date.
The note will be redeemed in cash by the company over four months in four equal monthly installments beginning on the four-month anniversary. It may be prepaid after four months at 115.
Cranshire will receive five-year warrants for 50% of the shares into which the note is convertible. The warrants are exercisable at the same price the note will be convertible.
Based in El Dorado Hills, Calif., NutraCea researches and produces stabilized rice bran and derivatives.
| Issuer: | NutraCea
|
| Issue: | Convertible note
|
| Amount: | $1 million
|
| Maturity: | Seven months
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Five years
|
| Investor: | Cranshire Capital, LP
|
| Pricing date: | March 29
|
| Stock symbol: | OTCBB: NTRZ
|
| Stock price: | $0.20 at close March 27
|
| Market capitalization: | $31.9 million
|
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