By Sheri Kasprzak
Atlanta, June 9 - Kahiki Foods, Inc. said it has raised an additional $1 million in a private placement of a convertible promissory note.
The latest note was sold to Townsends, Inc. and bears interest at 5% annually, matures on Dec. 31, 2009 and is convertible into common shares at $2.25 each.
Kahiki is currently seeking shareholder approval that would allow Townsends to convert the note into convertible preferred stock. The preferreds would pay annual dividends at a rate of $0.1125 per share.
Townsend bought another $1 million promissory note from Kahiki on Dec. 21.
Separately, Kahiki also completed the second tranche of a term promissory note for $1 million, bringing to $2,227,187 the proceeds raised from that offering. That note matures on June 20, 2010.
The proceeds from both notes will be used for general corporate purposes.
Based in Gahanna, Ohio, Kahiki produces frozen foods.
| Issuer: | Kahiki Foods, Inc.
|
| Issue: | Convertible promissory note
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| Amount: | $1 million
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| Maturity: | Dec. 31, 2009
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| Coupon: | 5%
|
| Price: | Par
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| Yield: | 5%
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| Conversion price: | $2.25
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| Warrants: | No
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| Investor: | Townsends, Inc.
|
| Settlement date: | June 3
|
| Stock price: | $1.60 at close June 3
|
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