By Sheri Kasprzak
New York, Dec. 6 - Universal Food & Beverage Co. pocketed $1.85 million from new senior secured convertible notes from existing investors and exchanged its outstanding series A convertible preferred stock for series B convertible preferred stock as part of a recapitalization.
The 14% notes are due in one year and are convertible into common shares at $0.03 each.
Once the recapitalization is completed, $3.15 million in similar notes issued in June will be combined with the new notes plus $194,000 in accrued interest.
The investors will receive warrants for 61,666,667 shares, exercisable at $0.01 each.
The company also plans to cancel $20.204 million in outstanding series A convertible preferreds in exchange for $10.102 million in series B convertible preferreds. The series B preferreds are convertible at $0.16 each.
The holders of the new series B shares will receive warrants for 63,137,500 common shares, exercisable at $0.10 each.
Based in St. Charles, Ill., Universal manufactures food and beverage products.
| Issuer: | Universal Food & Beverage Co.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $1.85 million
|
| Maturity: | One year
|
| Coupon: | 14%
|
| Price: | Par
|
| Yield: | 14%
|
| Conversion price: | $0.03
|
| Warrants: | For 61,666,667 shares
|
| Warrant strike price: | $0.01
|
| Settlement date: | Nov. 22
|
| Stock symbol: | Pink Sheets: UFBV
|
| Stock price: | $0.40 at close Nov. 22
|
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