12% 18-month discounted debentures should raise a total of $1 million
By Devika Patel
Knoxville, Tenn., Jan. 23 – Konared Corp. sold $440,000 of unsecured subordinated convertible debentures for $400,000 to Group 10 Holdings, LLC as part of a private placement on Jan. 20, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company plans to sell a total of $1.1 million debentures for $1 million, with two future identical tranches of $330,000 debentures sold for $300,000 apiece.
The 12% debentures mature in 18 months. They are convertible into common stock at a conversion price equal to the greater of 55% of the lowest closing bid price of the stock during the 25 consecutive trading days preceding conversion or $0.10. The debt may be prepaid at prices ranging from 105 to 125.
The Kalaheo, Hawaii, company produces extracts and powders from the coffee fruit for use in antioxidant juices and organic green teas as well as ingredients that can be added to food, beverages and nutritional products.
| Issuer: | Konared Corp.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | $1.1 million
|
| Maturity: | 18 months
|
| Coupon: | 12%
|
| Price: | 10% discount ($1 million)
|
| Conversion price: | The greater of 55% of the lowest closing bid price of the stock during the 25 consecutive trading days preceding conversion or $0.10
|
| Call: | At 105 to 125
|
| Warrants: | No
|
| Investor: | Group 10 Holdings, LLC
|
| Settlement date: | Jan. 20 (for $440,000)
|
| Stock symbol: | OTCBB: KRED
|
| Stock price: | $0.15 at close Jan. 16
|
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