Deal sells convertible promissory notes along with five-year warrants
By Devika Patel
Knoxville, Tenn., Oct. 30 - True Drinks Holdings, Inc. raised $300,000 in the eighth and final tranche of a $2.65 million private placement of 12% convertible promissory notes on Oct. 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced for up to $3 million with a $300,000 greenshoe on June 20.
The offering raised $450,000 at pricing, $625,000 on June 27, $340,000 on July 18, $300,000 on Aug. 1, $225,000 on Aug. 23, $200,000 on Sept. 12 and Sept. 16 and $211,000 on Oct. 10 and Oct. 16.
The notes mature on Nov. 29, 2013, which may be extended to Feb. 28, 2014 and then to May 31, 2014. The notes will convert to common shares at $2.00 per share.
In addition, the first-tranche investors received warrants for 240,455 shares, the second-tranche investors received warrants for 426,136 shares, the third-tranche investors received warrants for 231,818 shares, the fourth-tranche investors received warrants for 204,546 shares, the fifth-tranche investors received warrants for 153,409 shares, the sixth-tranche investors received warrants for 136,363 shares, the seventh-tranche investors received warrants for 143,863 shares and the eighth-tranche investors received warrants for 247,500 shares. Each warrant is exercisable at $1.10 for five years.
The conversion price of the notes and strike price of the warrants are 112.77% and 17.02% premiums to the June 19 closing share price of $0.94.
Axiom Capital Management, Inc. was the agent.
Proceeds will be used for clinical trials, follow-on financings and general working capital purposes.
The beverage company is based in Irvine, Calif.
| Issuer: | True Drinks Holdings, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $2,651,000
|
| Maturity: | Nov. 29, 2013
|
| Coupon: | 12%
|
| Conversion price: | $2.00
|
| Warrants: | For 1,784,090 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.10
|
| Agent: | Axiom Capital Management, Inc.
|
| Pricing date: | June 20
|
| Settlement date: | June 20 (for $450,000), June 27 (for $625,000), July 18 (for $340,000), Aug. 1 (for $300,000), Aug. 23 (for $225,000), Sept. 12 and Sept. 16 (for $200,000), Oct. 10 and Oct. 16 (for $211,000), Oct. 25 (for $300,000)
|
| Stock symbol: | OTCBB: TRUU
|
| Stock price: | $0.94 at close June 19
|
| Market capitalization: | $11.69 million
|
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