By Devika Patel
Knoxville, Tenn., Oct. 21 - Liberator Medical Holdings, Inc. completed a $2.5 million private placement of its convertible notes on Oct. 17, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 3% notes are convertible into common shares with an initial conversion price of $0.75 and mature Oct. 17, 2010.
Interest is paid semi-annually on each Oct. 15 and April 15.
Investors also received three-year warrants for 1,166,667 shares, which are exercisable at $1.25.
Ladenburg Thalmann & Co. Inc. was the agent.
Proceeds will be used to increase the company's advertising and sales efforts and for working capital needs.
Based in Stuart, Fla., Liberator Medical's subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors.
| Issuer: | Liberator Medical Holdings, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $2.5 million
|
| Maturity: | Oct. 17, 2010
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion price: | $0.75
|
| Warrants: | For 1,166,667 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.25
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | Oct. 17
|
| Stock symbol: | Pink Sheets: LBMH
|
| Stock price: | $0.70 at close Oct. 16
|
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