By Sheri Kasprzak
Atlanta, Nov. 15 - Ladenburg Thalmann Financial Services Inc. said Monday that the holders of its $18.01 million in senior convertible promissory notes converted the securities into shares after the company cut the conversion price.
The notes were converted into stock at $0.40 for Frost-Nevada Investments Trust and $0.50 for New Valley Corp.
The conversion price of the notes was amended from $1.54 for Frost-Nevada and $2.08 for New Valley.
Assuming the deal closes Dec. 31, about $22,439,000 in principal and accrued interest will be converted into about 51,180,000 shares at an average conversion price of $0.44.
Also on Monday, the company said it plans to raise up to $20 million in a private placement of 44.4 million shares at $0.45.
New Valley and Frost-Nevada have agreed to backstop the offering by up to $5 million each if the deal is not fully subscribed by other investors.
Ladenburg Thalmann is a New York-based retail and institutional securities brokerage, investment banking and asset management services company.
| Issuer: | Ladenburg Thalmann Financial Services Inc.
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| Issue: | Stock
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| Amount: | $20 million
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| Shares: | 44.4 million
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| Price: | $0.45
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| Warrants: | No
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| Investors: | Frost-Nevada Investments Trust and New Valley Corp. (for up to $5 million each)
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| Announcement date: | Nov. 15
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| Settlement date: | Dec. 31
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| Stock price: | $0.62 at close Nov. 15
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