Deal sells 10% three-year convertibles along with three-year warrants
By Devika Patel
Knoxville, Tenn., Sept. 4 - Rick's Cabaret International, Inc. completed a $2.5 million convertible debenture private placement on Aug. 28, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The 10% debenture is convertible into common shares at $10.25 per share. The note matures in three years and may be redeemed.
Investors also received warrants for 48,780 common shares. Each warrant is exercisable at $10.25 until Aug. 28, 2016.
The strike price is a 1.19% premium to the Aug. 27 closing share price of $10.13. The conversion price is also a 1.19% premium to that price.
Rick's is a Houston-based operator of adult nightclubs.
| Issuer: | Rick's Cabaret International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $2.5 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | $10.25
|
| Call: | Yes
|
| Warrants: | For 48,780 shares
|
| Warrant expiration: | Aug. 28, 2016
|
| Warrant strike price: | $10.25
|
| Settlement date: | Aug. 28
|
| Stock symbol: | Nasdaq: RICK
|
| Stock price: | $10.13 at close Aug. 27
|
| Market capitalization: | $111 million
|
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