Offering is to finance working capital and general corporate purposes
By Devika Patel
Knoxville, Tenn., Jan. 14 – Z Trim Holdings, Inc. completed a $1.04 million private placement of units on Jan. 8, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 260,000 units at $4.00 per unit. Each unit consists of one 12.5% redeemable convertible preferred share with 75% warrant coverage. Investors also received 946,400 additional warrants.
Each preferred converts to common stock at an initial conversion price of $0.35 per share.
Each warrant is exercisable at $0.64 for five years.
The strike price of the warrant is a 72.97% premium to the Jan. 7 closing share price of $0.37. The conversion price is a 5.41% discount to that price.
Proceeds will be used for working capital and general corporate purposes.
Z Trim 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.
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| Issue: | Units of one redeemable convertible preferred share and 75% warrant coverage, 946,400 additional warrants
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| Amount: | $1.04 million
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| Units: | 260,000
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| Price: | $4.00
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| Dividends: | 12.5%
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| Conversion price: | $0.35
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| Warrants: | 75% warrant coverage, plus 946,400 additional warrants
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.64
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| Settlement date: | Jan. 8
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| Stock symbol: | OTCBB: ZTHO
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| Stock price: | $0.37 at close Jan. 7
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| Market capitalization: | $15.1 million
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