By Devika Patel
Knoxville, Tenn., Sept. 8 - Organic To Go Food Corp. raised another $2 million in a private placement of a convertible promissory note with W.Health LP on Sept. 5, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company took in $5 million in an initial tranche on June 1 and may raise up to $10 million total.
The initial note was convertible into 2,166,667 common shares and matured on March 17, 2010. It was accompanied by a warrant for 625,000 shares, exercisable at $3.00 per share for five years.
The new note comes with a warrant for 250,000 shares and also matures March 17, 2010.
The entire number of warrants issued will be exercisable for a total of 1,125,000 common shares. The entire number of common shares issuable upon conversion if the company sells its planned total of $10 million in notes would be 4,333,333 shares.
Seattle-based Organic To Go operates casual restaurants that sell organic food.
| Issuer: | Organic To Go Food Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $10 million
|
| Maturity: | March 17, 2010
|
| Price: | Par
|
| Conversion ratio: | Into 4,333,333 shares
|
| Warrants: | For 1,125,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.00
|
| Investor: | W.Health LP
|
| Pricing date: | June 1 (for $5 million), Sept. 5 (for $2 million)
|
| Stock symbol: | OTCBB: OTGO
|
| Stock price: | $1.20 at close May 30
|
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