Company sells two-year 10% promissory notes with five-year warrants
By Devika Patel
Knoxville, Tenn., Aug. 12 - Brainy Brands Co., Inc. arranged a $2.4 million private placement of two-year 10% convertible secured promissory notes on Aug. 11, according to an 8-K filed Friday with the Securities and Exchange Commission. The company raised $220,000 at pricing.
The notes are convertible into common stock at $0.40 per share. The conversion price is a 5.26% premium to $0.38, the Aug. 10 closing share price.
Investors also received warrants for 30 common shares for each $4.00 invested. The warrants expire in five years and are each exercisable at $0.60, a 57.9% premium to the Aug. 10 closing share price.
The designer, developer and marketer of technology-based early education tools is based in Suwanee, Ga.
| Issuer: | Brainy Brands Co., Inc.
|
| Issue: | Convertible secured promissory notes
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| Amount: | $2.4 million
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| Maturity: | Two years
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| Coupon: | 10%
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| Conversion price: | $0.40
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| Conversion premium: | 5.26%
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| Warrants: | Warrants for 30 common shares per $4.00 invested
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.60
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| Settlement date: | Aug. 11 (for $220,000)
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| Stock symbol: | OTCBB: TBBC
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| Stock price: | $0.41 at close Aug. 11
|
| Market capitalization: | $13.73 million
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