Deal sells convertibles with five-year warrants for 13,333,334 shares
By Devika Patel
Knoxville, Tenn., Oct. 16 – Youngevity International, Inc. completed a $3.15 million tranche of a $10 million private placement of senior secured convertible notes with two investors on Oct. 13, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal is being conducted on a best-efforts basis.
The 8% notes, which mature in three years, will be convertible into a total of 28,571,428 common shares at $0.35 per share. The initial tranche of notes are convertible into 9 million shares. The company may prepay the notes at 110 after one year.
The investors also will receive warrants for 13,333,334 common shares, with warrants for 4.2 million shares issued in the initial tranche, which are each exercisable at $0.45 for five years.
The strike price is a 45.16% premium to the Oct. 12 closing share price of $0.31. The conversion price is a 12.9% premium to that price.
Settlement of the final tranche is expected Oct. 30.
Proceeds will be used as working capital.
The coffee company is based in Chula Vista, Calif.
Issuer: | Youngevity International, Inc.
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Issue: | Senior secured convertible notes
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Amount: | $10 million
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Maturity: | Three years
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Coupon: | 8%
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Conversion price: | $0.35
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Conversion premium: | 12.9%
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Conversion ratio: | Into a total of 28,571,428 shares
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Call option: | At 110 after one year
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Warrants: | For 13,333,334 shares
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Warrant expiration: | Five years
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Warrant strike price: | $0.45
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Settlement date: | Oct. 13 (for $3.15 million), Oct. 30
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Stock symbol: | OTCBB: YGYI
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Stock price: | $0.31 at close Oct. 12
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Market capitalization: | $117.58 million
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