By Abigail W. Adams
Portland, Me., April 2 – Youngevity International Inc. completed the sale of $3,621,143, or 381,173 shares, of series B convertible preferred stock at a public offering price of $9.50 to yield 5% with an initial conversion premium of 15%, according to a company news release.
TriPoint Global Equities LLC was the bookrunner for the best efforts offering.
Youngevity launched the offering for up to $10 million, or 1.05 million shares of preferred stock, in February and it ended on March 31, according to a 424B3 filing with the Securities and Exchange Commission.
The convertible preferred stock is freely convertible at an initial conversion price of $4.75 into two shares of common stock. Dividends will be paid quarterly and are cumulative.
If the aggregate amount of accrued dividends is less than $10 the company may choose not to make dividend payments until accrued dividends exceed $10, according to the 424B3 filing.
Holders of the preferreds will receive a 10% credit on Youngevity merchandise up to a maximum credit of $1,000.
The completion of the offering creates a forced conversion of $7.3 million in debt sold in a 2017 private placement.
The 2017 private placement will be converted into 1,577,032 shares of common stock at a conversion price of $4.60, according to a company news release.
Net proceeds are expected to be $3,328,761. Proceeds will be used for general corporate purposes.
Youngevity is a San Diego, Calif.-based omni-direct lifestyle company.
| Issuer: | Youngevity International Inc.
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| Securities: | Series B convertible cumulative preferred stock
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| Amount: | $3,621,143 million, or 381,173 shares
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| Maturity: | Perpetual
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| Bookrunner: | TriPoint Global Equities LLC
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| Dividend: | 5%
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| Price: | $9.50
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| Conversion premium: | 15%
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| Conversion price: | $4.75
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| Conversion rate: | 2
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| Pricing date: | Feb. 13
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| Stock symbol: | Nasdaq: YGYI
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| Stock price: | $4.15 at market close March 29
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| Market capitalization: | $81.85 million
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