Published on 1/3/2011 in the Prospect News PIPE Daily.
Z Trim Holdings raises $1.03 million via private placement of units
Offering with Brightline includes convertible preferreds and warrants
By Devika Patel
Knoxville, Tenn., Jan. 3 - Z Trim Holdings, Inc. settled the second tranche of a private placement, according to an 8-K filed Monday with the Securities and Exchange Commission. The company raised $2.31 million between Nov. 19 and Dec. 7 and a further $1.03 million in the latest tranches between Dec. 15 and Dec. 29.
The units were sold at a purchase price of about $10,000 apiece. Each unit consists of 2,000 series I 8% convertible preferred shares and one warrant for 15,000 shares.
The warrants are each exercisable at $1.50 for five years.
Each preferred is convertible into common shares at an initial conversion price of $1.00 per share. The preferreds convert into a total of 3,336,631 shares.
In the first tranche, the company sold 230.63 units to Brightline Ventures I, LLC; it sold 103.0325 units in the second tranche, of which $780,325 was invested by Brightline.
Z Trim Holdings is based in Mundelein, Ill., and makes Z Trim, a food ingredient made from the hulls of corn that is used as a fat replacement or emulsifier.
| Issuer: | Z Trim Holdings, Inc.
|
| Issue: | Units of 2,000 series I 8% convertible preferred shares and one warrant for 15,000 shares
|
| Amount: | $3,336,631
|
| Units: | 333.6625
|
| Price: | $10,000.00 (approximate)
|
| Warrants: | One warrant for 15,000 shares per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.50
|
| Investor: | Brightline Ventures I, LLC (for $3,086,631)
|
| Settlement dates: | Nov. 19, Dec. 7 (for $2,306,306), Dec. 15, Dec. 29 (for $1,030,325)
|
| Stock symbol: | OTCBB: ZTMH
|
| Stock price: | $0.07 at close Nov. 19
|
|
|
| Preferreds
|
| Dividends: | 8%
|
| Conversion price: | $1.00
|
| Conversion ratio: | Into 3,336,631 shares
|
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