Deal sells convertibles with five-year warrants for 18,586,956 shares
By Devika Patel
Knoxville, Tenn., Sept. 12 – Youngevity International, Inc. completed a $25,000 third and final tranche of a $4.75 million private placement of secured convertible notes on Sept. 10, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $4.35 million on Aug. 4 and $375,000 on Aug. 14.
The 8% notes mature in five years and are initially convertible into 13,571,429 common shares at $0.35 per share. They may be prepaid at 110.
The investors also received warrants for 18,586,956 common shares, which are each exercisable at $0.23 for five years. The company issued 17,021,739 warrants in the first tranche, 1,467,391 warrants in the second tranche and 97,826 warrants in the third tranche.
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, 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.
|
Issue: | Secured convertible notes
|
Amount: | $4.75 million
|
Maturity: | Five years
|
Coupon: | 8%
|
Conversion price: | $0.35
|
Conversion premium: | 52.17%
|
Conversion ratio: | Into 13,571,429 shares
|
Call: | At 110
|
Warrants: | For 18,586,956 shares
|
Warrant expiration: | Five years
|
Warrant strike price: | $0.23
|
Settlement date: | Aug. 4 (for $4.35 million), Aug. 14 (for $375,000), Sept. 10 (for $25,000)
|
Stock symbol: | OTCBB: YGYI
|
Stock price: | $0.23 at close Aug. 1
|
Market capitalization: | $107.67 million
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.