New York, May 15 - NutraCea said it priced a $17.56 million private placement of series C convertible preferred stock.
The preferreds were sold at $1,000 per share, pay a 5% dividend and convert into 1,176 common shares each, according to an 8-K filing with the Securities and Exchange Commission.
The company can force an automatic conversion if its stock trades above $2.00 for 30 out of 40 trading days.
Investors also received five-year warrants to buy 10,329,412 shares at $1.35 per share.
Halpern Capital, Inc. was placement agent.
NutraCea is am El Dorado, Calif., producer of stabilized rice bran and its derivatives.
| Issuer: | NutraCea
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| Issue: | Series C convertible preferred stock
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| Amount: | $17.56 million
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| Dividend: | 5%
|
| Conversion price: | $0.85
|
| Conversion ratio: | 1,176 common shares per $1,000 preferred share
|
| Automatic conversion: | If stock trades above $2.00 for 30 out of 40 trading days
|
| Call: | At any time at 400% of par
|
| Warrants: | For 10,329,412 shares
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| Warrant term: | 5 years
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| Warrant strike price: | $1.35
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| Announcement date: | May 15
|
| Placement agent: | Halpern Capital, Inc.
|
| Stock symbol: | OTC Bulletin Board: NTRZ
|
| Stock price: | $1.35 at close May 15
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