Deal includes warrants; discounted subordinated note due in one year
By Devika Patel
Knoxville, Tenn., Oct. 1 – Konared Corp. sold $250,000 of subordinated promissory notes with a $25,000 original issue discount for $225,000 in a private placement on Sept. 30, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 8% notes are due on Sept. 30, 2016.
Investors also received warrants for 3,125,000 shares. The warrants are each exercisable at $0.08 for five years. The strike price is a 14.29% premium to the Sept. 29 closing share price of $0.07.
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: | Subordinated promissory note
|
| Amount: | $250,000
|
| Maturity: | Sept. 30, 2016
|
| Coupon: | 8%
|
| Price: | $225,000 ($25,000 original issue discount)
|
| Warrants: | For 3,125,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.08
|
| Settlement date: | Sept. 30
|
| Stock symbol: | OTCBB: KRED
|
| Stock price: | $0.07 at close Sept. 29
|
| Market capitalization: | $7.48 million
|
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