Two-year promissory note sold to two investors with five-year warrants
By Devika Patel
Knoxville, Tenn., March 28 - 4Licensing Corp. settled a $1.65 million private placement of promissory notes on March 25, according to an 8-K filed Friday with the Securities and Exchange Commission.
Cleveland Capital, LP invested $150,000, and Prescott Group Aggressive Small Cap Masterfund, GP invested $1.5 million.
The 5% notes are due March 25, 2016. They may be prepaid at 125.
The investors also will receive warrants for 1,683,673 shares, with warrants for 153,061 shares issued to Cleveland and warrants for 1,530,612 shares issued to Prescott. Each warrant is exercisable at $0.98 for 10 years. The strike price is a 38.75% discount to the March 29 closing share price of $1.60.
The New York company licenses merchandising rights, properties and product concepts with a focus on youth-oriented and specialty markets.
| Issuer: | 4Licensing Corp.
|
| Issue: | Promissory notes
|
| Amount: | $1.65 million
|
| Maturity: | March 25, 2016
|
| Coupon: | 5%
|
| Call: | At 125
|
| Warrants: | For 1,683,673shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.98
|
| Investors: | Cleveland Capital, LP (for $150,000) and Prescott Group Aggressive Small Cap Masterfund, GP (for $1.5 million)
|
| Announcement date: | March 28
|
| Settlement date: | March 25
|
| Stock symbol: | OTCBB: FOUR
|
| Stock price: | $1.60 at close on March 27
|
| Market capitalization: | $21.94 million
|
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