By Sheri Kasprzak
New York, Oct. 27 - Hartville Group, Inc. said it issued a further $1,103,141 of payment-in-kind convertible debentures in exchange for a waiver from holders of the original issue of the securities.
The extra convertibles effectively increase the interest rate on the existing PIK debentures to 15% form 8%.
The debentures are convertible into common shares at $0.20 each.
The 8% debentures are due in November 2006 and were issued to 11 accredited investors.
The PIK debentures were issued in exchange for a waiver by the holders of the company's two-year convertible debentures due in November 2006 related to a requirement that Hartville register the underlying shares issuable upon conversion.
The investors in the PIK debentures also received warrants for 5,515,704 shares, exercisable at $0.01 each.
Based in Canton, Ohio, Hartville Group provides health insurance for pets.
| Issuer: | Hartville Group, Inc.
|
| Issue: | Payment-in-kind convertible debentures
|
| Amount: | $1,103,141
|
| Maturity: | November 2006
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.20
|
| Warrants: | For 5,515,704 shares
|
| Warrant strike price: | $0.01
|
| Settlement date: | Oct. 25
|
| Stock price: | $0.17 at close Oct. 25
|
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