Company sells preferred stock at $4.00 apiece through agent Merriman
By Susanna Moon
Chicago, Jan. 13 - True Drinks Holdings, Inc. raised $350,000 in the third tranche of a $6.24 million private placement of 5% series B convertible preferred stock on Jan. 7, according to an 8-K filing Tuesday with the Securities and Exchange Commission.
In the most recent tranche, the company sold 87,500 preferreds along with five-year warrants for 408,333 shares. The company sold about 1.28 million preferreds at $4.00 each in the first tranche and 191,250 preferreds in the second tranche.
Each preferred has a stated value of $4.00.
The conversion price is $0.25, which is a 16.67% premium to the Nov. 21 closing share price.
The company can force conversion if the daily trading volume of its common stock, divided by the closing price, equals at least $250,000 for 20 consecutive trading days and the average closing price of the common stock is at least $0.62 for 10 consecutive trading days.
Investors also received 35% warrant coverage. Each warrant is exercisable at $0.30 for five years. The strike price is identical to the Nov. 21 closing share price.
Proceeds will be used for general working capital purposes.
The beverage company is based in Irvine, Calif.
| Issuer: | True Drinks Holdings, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $6,235,000
|
| Preferreds: | 1,471,250
|
| Price: | $4.00
|
| Dividends: | 5%
|
| Conversion price: | $0.25
|
| Warrants: | 35% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.30
|
| Agent: | Merriman Capital, Inc.
|
| Pricing date: | Nov. 22
|
| Settlement dates: | Nov. 25 (for about $5.19 million), Dec. 11 (for $765,000), Jan. 7 (for $350,000)
|
| Stock symbol: | OTCBB: TRUU
|
| Stock price: | $0.30 at close Nov. 21
|
| Market capitalization: | $7.25 million
|
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