By Laura Lutz
Des Moines, Dec. 14 - Spicy Pickle Franchising, Inc. closed a private placement of units for $5.99 million, according to a news release.
The company sold 705 units at $8,500 apiece.
Each unit consists of one convertible preferred share and 7,500 warrants.
The preferreds bear dividends at 5% in the first and second years and at 7.5% in the third year. Each preferred share is convertible into 10,000 shares at $0.85 per share.
Each warrant is exercisable for one share at $1.60 for five years.
Two of Spicy Pickle's board members and their immediate families invested $1.3 million in the placement.
The Denver-based restaurant operator will use the proceeds to accelerate its development.
| Issuer: | Spicy Pickle Franchising, Inc.
|
| Issue: | Units of one convertible preferred share and 7,500 warrants
|
| Amount: | $5,992,000
|
| Units: | 705
|
| Price: | $8,500
|
| Conversion ratio: | Each preferred into 10,000 shares
|
| Conversion price: | $0.85
|
| Dividend: | 5% in first two years, 7.5% in third year
|
| Warrants: | 7,500 per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.60
|
| Announcement date: | Dec. 14
|
| Stock symbol: | OTCBB: SPKL
|
| Stock price: | $1.11 at close Dec. 14
|
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