Deal sells one-year notes, along with warrants for 1,965,000 shares
By Devika Patel
Knoxville, Tenn., Jan. 17 - Victory Electronic Cigarettes Corp. completed a $9.83 million private placement of 15% senior secured convertible promissory notes on Jan. 14, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes mature in one year and may be converted into common shares at $5.00 per share, which is a 52.15% discount to the Jan. 13 closing share price of $10.45. The company may prepay the notes at 115.
Investors also received warrants for 1,965,000 common shares, which are each exercisable at $5.00 for five years. The strike price is also a 52.15% discount to the Jan. 13 closing share price.
The Ball Ground, Ga., company offers electronic cigarettes.
| Issuer: | Victory Electronic Cigarettes Corp.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $9,825,000
|
| Maturity: | One year
|
| Coupon: | 15%
|
| Conversion price: | $5.00
|
| Call: | At 115
|
| Warrants: | For 1,965,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.00
|
| Settlement date: | Jan. 14
|
| Stock symbol: | OTCBB: ECIG
|
| Stock price: | $10.45 at close Jan. 13
|
| Market capitalization: | $776.15 million
|
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