Deal sells convertibles with five-year warrants for 19,565,217 shares
By Devika Patel
Knoxville, Tenn., Aug. 18 – Youngevity International, Inc. completed a $375,000 second tranche of a private placement of secured convertible notes on Aug. 14, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $4.35 million on Aug. 4 and may raise up to a total of $5 million until Sept. 1.
The 8% notes, which mature in five years, are convertible into common stock at $0.35 per share. They may be prepaid at 110.
The investors also will receive warrants for up to 19,565,217 common shares, which are each exercisable at $0.23 for five years. The company issued 17,021,739 warrants in the first tranche and 1,467,391 warrants in the second.
The strike price is identical to the Aug. 1 closing share price. The conversion price is a 52.17% premium to that price.
The company intends to invest the proceeds in its wholly owned subsidiary, CLR Roasters, LLC, to purchase K-Cup manufacturing capabilities, to acquire a second coffee plantation, for capital improvements and to purchase green coffee.
The coffee company is based in San Diego.
| Issuer: | Youngevity International, Inc.
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| Issue: | Secured convertible notes
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| Amount: | $5 million
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Conversion price: | $0.35
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| Conversion premium: | 52.17%
|
| Call: | At 110
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| Warrants: | For up to 19,565,217 shares
|
| Warrant expiration: | Five years
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| Warrant strike price: | $0.23
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| Settlement date: | Aug. 4 (for $4.35 million), Aug. 14 (for $375,000), Sept. 1
|
| Stock symbol: | OTCBB: YGYI
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| Stock price: | $0.23 at close Aug. 1
|
| Market capitalization: | $88.1 million
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