Company originally sold $2.5 million of notes to majority shareholder
By Susanna Moon
Chicago, Feb. 15 - Amacore Group, Inc. agreed to sell Vicis Capital Master Fund another $1.5 million of its 15% senior secured convertible notes due June 30, 2012, according to an 8-K filing with the Securities and Exchange Commission.
The company entered into an amended securities purchase agreement with Vicis on Feb. 9. Of the $1.5 million, Vicis paid $500,000 on Feb. 9 and is required to deposit the remaining $1 million within five days. Vicis is the company's majority shareholder, and two people associated with Vicis are members of the company's board of directors.
The company said on June 8, 2011 that it planned to sell $2.5 million of the convertibles to Vicis. The deal priced June 2, 2011.
The notes are convertible into class A common stock at an initial conversion price of $0.005 per share.
If the company defaults, the interest rate will jump to 18% per year.
Amacore is based in Maitland, Fla., and provides health-related membership benefit programs and insurance programs to individuals, families and employer groups in the United States.
| Issuer: | Amacore Group, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $4 million
|
| Maturity: | June 30, 2012
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Conversion price: | $0.005
|
| Warrants: | No
|
| Investor: | Vicis Capital Master Fund
|
| Pricing date: | June 2, 2011
|
| Settlement date: | Feb. 9 (for $500,000)
|
| Stock symbol: | Pink Sheets: ACGI
|
| Stock price: | $0.00 at close June 2
|
| Market capitalization: | $2.1 million
|
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