0% original issue discount debentures sold to single investor in deal
By Devika Patel
Knoxville, Tenn., Sept. 19 – Montalvo Spirits, Inc. arranged a private placement to sell $350,000 of original issue discount convertible debentures with a lone investor on Sept. 15, according to an 8-K filed Friday with the Securities and Exchange Commission. The company has raised $150,000 of the proceeds.
The zero-coupon debentures mature Sept. 12, 2017 and are convertible into common stock at 65% of the lowest closing bid price of the stock for the 20 trading days preceding conversion.
The investor was paid a fee of $5,000 and 400,000 restricted common shares.
The Moorpark, Calif., company develops, markets and distributes alcoholic beverages.
Issuer: | Montalvo Spirits, Inc.
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Issue: | Original issue discount convertible debentures
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Amount: | $350,000
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Maturity: | Sept. 12, 2017
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Coupon: | 0%
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Conversion price: | 65% of the lowest closing bid price of the stock for the 20 trading days preceding conversion
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Warrants: | No
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Fees: | $5,000 and 400,000 restricted common shares
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Pricing date: | Sept. 15
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Settlement date: | Sept. 15 (for $150,000)
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Stock symbol: | OTCBB: TQLA
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Stock price: | $0.07 at close Sept. 12
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Market capitalization: | $4.99 million
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