Offering with Brightline Ventures also includes 4,990,046 warrants
By Devika Patel
Knoxville, Tenn., March 21 - Z Trim Holdings, Inc. said it settled a $3.3 million private placement of convertible preferred series II stock.
The 8% preferreds were sold at $5.00 apiece to Brightline Ventures. The securities convert into 3,326,697 common shares at $1.00 per share.
The investor also received 4,990,046 warrants, which are each exercisable at $1.50.
The conversion price is a 23.08% discount and the warrant strike price reflects a 15.39% premium to the March 18 closing share price of $1.30.
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: | Convertible preferred series II stock
|
| Amount: | $3,326,695
|
| Preferreds: | 665,339
|
| Price: | $5.00
|
| Dividends: | 8%
|
| Conversion price: | $1.00
|
| Conversion ratio: | Into 3,326,697 shares
|
| Warrants: | For 4,990,046 shares
|
| Warrant strike price: | $1.50
|
| Investor: | Brightline Ventures
|
| Settlement date: | March 21
|
| Stock symbol: | Pink Sheets: ZTHO
|
| Stock price: | $1.30 at close March 18
|
| Market capitalization: | $10 million
|
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