By Devika Patel
Knoxville, Tenn., March 31 - Health Benefits Direct Corp. settled a $5 million private placement of units, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 6.25 million units of one common share and one warrant at $0.80 per share to Co-Investment Fund II, LP and other institutional investors. The warrants are exercisable at $0.80 for five years.
The warrants may expire sooner if the volume weighted average trading price of the company's common shares is $1.60 or higher. In that case, the warrants will expire within 10 business days.
Health Benefits may sell 1 million more of these units within 30 days. The Co-Investment Fund II has a right of first refusal on these units.
Proceeds will be used for working capital purposes.
Based in Radnor, Pa., Health Benefits provides health and life insurance products to individuals.
| Issuer: | Health Benefits Direct Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $5 million
|
| Units: | 6.25 million
|
| Price: | $0.80
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.80
|
| Investors: | Co-Investment Fund II, LP (lead)
|
| Settlement date: | March 31
|
| Stock symbol: | OTCBB: HBDT
|
| Stock price: | $0.99 at close March 31
|
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