By Devika Patel
Knoxville, Tenn., March 24 - Vaughan Foods, Inc. secured a $3 million revolving line of credit agreement with Peninsula Bank Business Funding on March 19, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The loan bears interest at Prime plus 4.5%, with a floor of 7.75%. It matures May 1, 2010.
Peninsula received a warrant for 253,507 common shares, which is exercisable at $0.5917 until March 6, 2016.
Moore, Okla.-based Vaughan processes and packages value-added refrigerated foods and distributes the food to customers three or more times per week.
| Issuer: | Vaughan Foods, Inc.
|
| Issue: | Revolving line of credit
|
| Amount: | $3 million
|
| Tenor: | May 1, 2010
|
| Coupon: | Prime plus 4.5%, floor of 7.75%
|
| Price: | Par
|
| Yield: | Prime plus 4.5%
|
| Warrants: | For 253,507 common shares
|
| Warrant expiration: | March 6, 2016
|
| Warrant strike price: | $0.5917
|
| Investor: | Peninsula Bank Business Funding
|
| Pricing date: | March 19
|
| Stock symbol: | Nasdaq: FOOD
|
| Stock price: | $0.60 at close March 19
|
| Market capitalization: | $2.54 million
|
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