By Sheri Kasprzak
Atlanta, April 1 - Nutrition 21 Inc. wrapped a private placement for $9.6 million.
The company sold 9,600 preferred shares at $1,000 each to Midsummer Investment Ltd., Cross Atlantic Partners, Uplift Equity Partners and Enable Capital Management LLC.
The preferreds are convertible into common shares at $1.25 each and pay annual dividends of 6%.
The company may force conversion if the volume weighted average price is above $3.76 each for 20 consecutive trading days.
Nutrition 21 must redeem the preferreds on March 31, 2009 at the stated value plus dividends.
The investors will also receive warrants for 2,948,662 shares, exercisable at $1.31 each from Oct. 1, 2005 through March 31, 2010.
Based in Purchase, N.Y., Nutrition 21 develops and markets chromium-based nutritional supplements. The proceeds will be used to improve the company's balance sheet.
| Issuer: | Nutrition 21 Inc.
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| Issue: | Preferred stock
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| Amount: | $9.6 million
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| Shares: | 9,600
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| Price: | $1,000
|
| Dividends: | 6%
|
| Conversion price: | $1.25
|
| Call: | May force conversion if volume weighted average price is above $3.76 for 20 consecutive trading days. Must redeem on March 31, 2009 at stated value plus dividends
|
| Warrants: | For 2,948,662 shares
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| Warrant expiration: | From Oct. 1, 2005 through March 31, 2010
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| Warrant strike price: | $1.31
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| Investors: | Midsummer Investment Ltd., Cross Atlantic Partners, Uplift Equity Partners and Enable Capital Management LLC
|
| Settlement date: | April 1
|
| Stock price: | $1.29 at close April 1
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