Company sells 10% two-year convertibles along with two-year warrants
By Devika Patel
Knoxville, Tenn., Jan. 25 - Rick's Cabaret International, Inc. completed a $3 million convertible debenture private placement on Jan. 24, according to an 8-K filed Friday with the Securities and Exchange Commission. Brean Capital, LLC was the agent.
The 10% debenture is convertible into common shares at $10.00 per share. The note matures in two years.
Investors also received warrants for 60,000 common shares. Each warrant is exercisable at $10.00 until Jan. 24, 2015.
The strike price is an 18.34% premium to the Jan. 23 closing share price of $8.45. The conversion price is also an 18.34% premium to that price.
Rick's is a Houston-based operator of adult nightclubs.
| Issuer: | Rick's Cabaret International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $3 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Conversion price: | $10.00
|
| Warrants: | For 60,000 shares
|
| Warrant expiration: | Jan. 24, 2015
|
| Warrant strike price: | $10.00
|
| Agent: | Brean Capital, LLC
|
| Settlement date: | Jan. 24
|
| Stock symbol: | Nasdaq: RICK
|
| Stock price: | $8.45 at close Jan. 23
|
| Market capitalization: | $81.93 million
|
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