By Sheri Kasprzak
Atlanta, Jan. 28 - YTB International Inc. received $2 million from the private placement of a convertible note.
The company sold the secured convertible note to Laurus Master Fund Ltd. The note bears interest at the Prime rate plus 300 basis points and matures in three years.
The note is either payable in cash or convertible into common shares at $0.80 for the first million and $1.25 for the second million shares.
The investor may not convert the note into common stock for six months from the closing date, but then may convert it into a maximum of 66,667 shares per month.
Laurus also received a warrant for 400,000 shares at $1.58 each and 400,000 shares at $1.72 each exercisable for seven years.
YTB may also redeem the note at any time at 102% of the face value.
Based in Englewood Cliffs, N.J., YTB is a referral marketing and travel company. It plans to use the proceeds from the private placement for growth.
| Issuer: | YTB International Inc.
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| Issue: | Secured convertible note
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| Amount: | $2 million
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| Maturity: | Three years
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| Coupon: | Prime rate plus 300 basis points
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| Conversion price: | $0.80 for the first million shares; $1.25 for the second million shares
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| Call: | Redeemable any time at 102% of face value
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| Warrants: | For 800,000 shares
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| Warrant expiration: | Seven years
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| Warrant strike price: | $1.58 for 400,000 shares; $1.72 for 400,000 shares
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| Investor: | Laurus Master Fund Ltd.
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| Settlement date: | Jan. 28
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| Stock price: | $1.30 at close Jan. 27 (last trade)
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