By Sheri Kasprzak
Atlanta, Nov. 11 - Tag-It Pacific Inc. has raised $12.5 million through the sale of 6% one-year convertible notes.
The notes are convertible at $3.65 per share and include 171,233 warrants, exercisable for five years at $3.65.
The notes are redeemable after one year for cash at 115% of face value and are secured partially by the intangible assets of its Talon trademark.
Sanders Morris Harris Inc. acted as placement agent in the deal. The investors were all existing shareholders.
Based in Los Angeles, Tag-It Pacific is a trim distribution company for retail clothing manufacturers and mass merchandisers. The company plans to use the funding from the deal to repay its existing UPS credit facility, for working capital and to roll out its Talon zipper division.
| Issuer: | Tag-It Pacific Inc.
|
| Issue: | Convertible notes
|
| Amount: | $12.5 million
|
| Maturity: | One year
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $3.65
|
| Warrants: | 171,233
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.65
|
| Placement agent: | Sanders Morris Harris Inc.
|
| Announcement date: | Nov. 11
|
| Settlement date: | Nov. 11
|
| Stock price: | $3.35 at close Nov. 11
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
