Convertible sold to Costa Brava Partnership, replaces $5 million notes
By Devika Patel
Knoxville, Tenn., Dec. 23 - Orange 21 Inc. sold a promissory note to Costa Brava Partnership III, LP on Dec. 20, according to an 8-K filed Thursday with the Securities and Exchange Commission. The $7 million note replaces $5 million in notes held by the investor and provides an additional $2 million in proceeds.
The 9% note is due Dec. 31, 2012. Up to $2.25 million of the note is convertible into common shares at $2.25 per share, an 82.93% premium to the Dec. 17 closing share price of $1.23.
The $2 million of proceeds will be used for working capital purposes.
Based in Carlsbad, Calif., Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets.
| Issuer: | Orange 21 Inc.
|
| Issue: | Promissory note
|
| Amount: | $7 million
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | $2.25
|
| Conversion premium: | 82.93%
|
| Warrants: | No
|
| Investor: | Costa Brava Partnership III, LP
|
| Settlement date: | Dec. 20
|
| Stock symbol: | OTCBB: ORNG
|
| Stock price: | $1.23 at close Dec. 20
|
| Market capitalization: | $14.97 million
|
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