Deal sells convertible promissory notes along with five-year warrants
By Devika Patel
Knoxville, Tenn., June 26 - True Drinks Holdings, Inc. arranged a $3 million private placement of 12% convertible promissory notes on June 20, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal has a $300,000 greenshoe and has already raised $450,000.
Axiom Capital Management, Inc. is the agent.
The notes mature on Nov. 29, 2013, which may be extended to Feb. 28, 2014 and then to May 31, 2014.
The notes are convertible into common shares at $2.00 per share.
In addition, the first-tranche investors received warrants for 174,455 shares. Each warrant is exercisable at $1.10 for five years.
The conversion price of the notes and the strike price of the warrants are 112.77% and 17.02% premiums, respectively, to the June 19 closing share price of $0.94.
If the company exercises either its first extension option or its second extension option, the number of warrant shares will increase by 25% per extension.
Proceeds will be used for general corporate purposes.
The beverage company is based in Irvine, Calif.
| Issuer: | True Drinks Holdings, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $3 million
|
| Greenshoe: | $300,000
|
| Maturity: | Nov. 29, 2013
|
| Coupon: | 12%
|
| Conversion price: | $2.00
|
| Warrants: | For 174,455 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)
|
| Stock symbol: | OTCBB: TRUU
|
| Stock price: | $0.94 at close June 19
|
| Market capitalization: | $25 million
|
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