Company sells discount one-year notes that convert at $0.14 per share
By Devika Patel
Knoxville, Tenn., Dec. 29 – Electronic Cigarettes International Group, Ltd. settled a private placement of original issue discount 12% convertible promissory notes on Dec. 23, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $1 million by selling $1.05 million of notes, with about a 5% discount.
The one-year notes have an original issue discount of 5%. The notes will initially convert to common shares at $0.14 per share, a 16.67% premium to the Dec. 22 closing share price of $0.12.
Interest may be paid in cash or common stock, at the company’s option, at an ascribed value per share equal to 75% of the lowest volume-weighted average price of the stock for the 20 trading days preceding the payment.
The Spring Lake, Mich., company markets and sells electronic cigarettes.
| Issuer: | Electronic Cigarettes International Group, Ltd.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $1,052,632
|
| Maturity: | One year
|
| Price: | About a 5% discount (for $1 million)
|
| Coupon: | 12%
|
| Conversion price: | $0.14
|
| Conversion premium: | 16.67%
|
| Warrants: | No
|
| Settlement date: | Dec. 23
|
| Stock symbol: | OTCBB: ECIG
|
| Stock price: | $0.12 at close Dec. 22
|
| Market capitalization: | $8.28 million
|
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