Deal sells original issue discount 12% convertible promissory notes
By Devika Patel
Knoxville, Tenn., Jan. 22 – Electronic Cigarettes International Group, Ltd. sold $1.05 million of original issue discount 12% convertible promissory notes in a $1 million private placement on Jan. 16, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The one-year notes have an original issue discount of 5%. The notes will initially convert to common shares at $0.05 per share, which is identical to the Jan. 15 closing share price. The note may be prepaid at 120.
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 Grand Rapids, Mich., company markets and sells electronic cigarettes.
| Issuer: | Electronic Cigarettes International Group, Ltd.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $1,052,632
|
| Maturity: | One year
|
| Price: | $1 million
|
| Coupon: | 12%
|
| Conversion price: | $0.05
|
| Call: | At 120
|
| Warrants: | No
|
| Settlement date: | Jan. 16
|
| Stock symbol: | OTCBB: ECIG
|
| Stock price: | $0.05 at close Jan. 15
|
| Market capitalization: | $4.4 million
|
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