Investor purchases 9.9% one-year notes with 110% warrant coverage
By Devika Patel
Knoxville, Tenn., Nov. 20 – The Fresh Diet, Inc. will sell a $1 million convertible note in a private placement, according to an 8-K filed Friday with the Securities and Exchange Commission by the company’s parent, Innovative Food Holdings, Inc. The deal was arranged on Nov. 12 and has already raised $342,000.
The 9.9% note is due in one year and may be convertible into The Fresh Diet’s common stock at an $8 million valuation.
The investor also received 110% warrant coverage. Each warrant is exercisable for five years, with half exercisable at a 32% premium to the conversion price and half exercisable at a 76% premium to the conversion price.
Bonita Springs, Fla.-based Innovative Food provides food products to premium restaurants. Fresh Diet is a Miami subsidiary.
Issuer: | The Fresh Diet, Inc.
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Issue: | Convertible note
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Amount: | $1 million
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Maturity: | One year
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Coupon: | 9.9%
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Warrants: | 110% coverage
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Warrant expiration: | Five years
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Settlement date: | Nov. 12 (for $342,000)
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