By Sheri Kasprzak
New York, Sept. 16 - Knockout Holdings Inc. said it has completed a $2.8 million private placement of convertible notes.
The notes mature on Feb. 28, 2007, bear interest at 16.66% annually and are convertible into common shares at $0.50 each.
In order to complete the offering, the company received a waiver from the holders of its 11% senior secured notes due May 2, 2008. Under the original terms of the 11% notes, the company had not been allowed to enter into any additional debt without approval from the noteholders.
As consideration for the waiver, the notes will now be convertible into common shares at $0.50 each and the warrants issued with the notes will now be exercisable at $0.30 each, dropped from $0.50.
Knockout Holdings, based in Northlake, Ill., develops and markets the George Foreman's Knock-Out line of nontoxic cleaners and disinfectants.
| Issuer: | Knockout Holdings Inc.
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| Issue: | Convertible notes
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| Amount: | $2.8 million
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| Maturity: | Feb. 28, 2007
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| Coupon: | 16.66%
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| Price: | Par
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| Yield: | 16.66%
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| Conversion price: | $0.50
|
| Warrants: | No
|
| Settlement date: | Sept. 15
|
| Stock price: | $0.63 at close Sept. 15
|
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