Deal sells one-year notes, along with warrants for 3.21 million shares
By Devika Patel
Knoxville, Tenn., March 6 - Victory Electronic Cigarettes Corp. settled a $16.05 million private placement of 15% senior secured convertible promissory notes on Feb. 28, according to an 8-K filed Thursday 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 65.46% discount to the Feb. 27 closing share price of $14.48. The company may prepay the notes at 115.
Investors also received warrants for 3.21 million common shares, which are each exercisable at $5.00 for five years. The strike price is also a 65.46% discount to the Feb. 27 closing share price.
The Ball Ground, Ga., company offers electronic cigarettes.
Issuer: | Victory Electronic Cigarettes Corp.
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Issue: | Senior secured convertible promissory notes
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Amount: | $16.05 million
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Maturity: | One year
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Coupon: | 15%
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Conversion price: | $5.00
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Call: | At 115
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Warrants: | For 3.21 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $5.00
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Settlement date: | Feb. 28
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Stock symbol: | OTCBB: ECIG
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Stock price: | $14.48 at close Feb. 27
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Market capitalization: | $972.77 million
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