Deal sells notes in multiple closings that convert at $0.14 per share
By Devika Patel
Knoxville, Tenn., Jan. 14 – Electronic Cigarettes International Group, Ltd. settled a second tranche of a $1.84 million private placement of original issue discount 12% convertible promissory notes between Jan. 8 and Jan. 12, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It also raised $250,000 in a placement of $263,158 of 10% notes on Jan. 14.
The 12% note sale raised $1 million by selling $1.05 million of notes, with about a 5% discount on Dec. 23, and the company raised $750,000 by selling $789,474 of notes in the January closings.
The one-year notes have an original issue discount of 5%. The notes will initially convert to common shares at $0.14 per share, a 16.67% premium to the Dec. 22 closing share price of $0.12.
Interest may be paid in cash or common stock, at the company’s option, at an ascribed value per share equal to 75% of the lowest volume-weighted average price of the stock for the 20 trading days preceding the payment.
The 10% notes are due in nine months and have an original issue discount of 5%. The notes may be converted into shares at an initial conversion price of $0.14, a 180% premium to the Jan. 13 closing share price of $0.05. The notes may be prepaid at 120 and put at 105.
The Spring Lake, Mich., company markets and sells electronic cigarettes.
| Issuer: | Electronic Cigarettes International Group, Ltd.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $2,105,264
|
| Conversion price: | $0.14
|
| Warrants: | No
|
| Stock symbol: | OTCBB: ECIG
|
| Market capitalization: | $6.21 million
|
|
|
| 12% notes
|
| Amount: | $1,842,106
|
| Maturity: | One year
|
| Price: | $1.75 million
|
| Coupon: | 12%
|
| Conversion premium: | 16.67%
|
| Warrants: | No
|
| Settlement date: | Dec. 23 (for $1,052,632), between Jan. 8 and Jan. 12 (for $789,474)
|
| Stock price: | $0.12 at close Dec. 22
|
|
|
| 10% notes
|
| Amount: | $263,158
|
| Maturity: | Nine months
|
| Price: | $250,000
|
| Coupon: | 10%
|
| Conversion premium: | 180%
|
| Call: | At 120
|
| Put: | At 105
|
| Warrants: | No
|
| Settlement date: | Jan. 14
|
| Stock price: | $0.05 at close Jan. 13
|
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