By Devika Patel
Knoxville, Tenn., Sept. 11 - AVP, Inc. gave further details about a $3.5 million private placement of convertible debt and preferred stock with RJSM Partners, LLC in an 8-K filed Thursday with the Securities and Exchange Commission. The first tranche of the deal settled for $2.5 million on Sept. 8.
The financing consists of $2.8 million in convertible notes, which are convertible into 5.6 million common shares at $0.50 per share, and 50,000 series B preferred shares, bought for $696,750.
The financing will be funded in two tranches. The company received $2.5 million on Sept. 8 and will take in an additional $1 million by Sept. 15.
The $2.5 million that the company received in the first tranche was in exchange for a $1.8 million note and the 50,000 preferreds. The additional $1 million will be in exchange for an additional note.
Proceeds will be used for working capital and the continued expansion of the company's lifestyle sports entertainment offerings in professional beach volleyball.
Los Angeles-based AVP operates professional volleyball events.
| Issuer: | AVP, Inc.
|
| Issue: | Convertible notes, series B preferred stock
|
| Amount: | $3.5 million
|
| Warrants: | No
|
| Investor: | RJSM Partners, LLC
|
| Settlement date: | Sept. 8 (for $2.5 million), Sept. 15 (for $1 million)
|
| Stock symbol: | OTCBB: AVPI
|
| Stock price: | $0.40 at close Sept. 8
|
|
|
| Convertible notes
|
| Amount: | $2,803,250
|
| Conversion ratio: | Into 5.6 million shares
|
| Conversion price: | $0.50
|
|
|
| Preferreds
|
| Amount: | $696,750
|
| Shares: | 50,000
|
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