Convertible note due April 24, 2015 sold with warrants for $13 million
By Devika Patel
Knoxville, Tenn., March 17 – Electronic Cigarettes International Group, Ltd. raised $13 million in a private placement of $13.68 million original issue discount 12% convertible promissory notes on March 13, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The notes have an original issue discount of 5% and are due on April 24, 2015. The notes will initially convert to common shares at $0.05 per share, a 70.59% discount to the March 12 closing share price of $0.17.
The notes may be prepaid at par.
Investors also received 226,562,239 warrants, which are each exercisable at $0.03 for five years. The strike price is an 82.36% discount to the March 12 closing share price.
The Spring Lake, Mich., company markets and sells electronic cigarettes.
| Issuer: | Electronic Cigarettes International Group, Ltd.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $13,684,211
|
| Maturity: | April 24, 2015
|
| Price: | $13 million
|
| Coupon: | 12%
|
| Conversion price: | $0.05
|
| Call: | At par
|
| Warrants: | 226,562,239
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.03
|
| Settlement date: | March 13
|
| Stock symbol: | OTCBB: ECIG
|
| Stock price: | $0.17 at close March 12
|
| Market capitalization: | $13.53 million
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