Offering includes three-year warrant coverage; notes due June 15, 2017
By Devika Patel
Knoxville, Tenn., Dec. 16 – ProPhase Labs, Inc. raised $1.5 million in the first tranche of a $3 million private placement of 12% series A secured promissory notes on Dec. 11, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Each note is due on June 15, 2017 and may be prepaid at any time.
Investors also received warrants for 17,000 shares for every $500,000 invested, or warrants for 51,000 shares in the initial tranche. Each of the three-year warrants is exercisable at $1.35, which is a 3.57% discount to $1.40, the Dec. 10 closing price.
The manufacturer, marketer and distributor of a ranges of homeopathic and health products is based in Doylestown, Pa.
| Issuer: | ProPhase Labs, Inc.
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| Issue: | Series A secured promissory notes
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| Amount: | $3 million
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| Maturity: | June 15, 2017
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| Coupon: | 12%
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| Call: | Yes
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| Warrants: | Warrants for 17,000 shares for every $500,000 invested
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| Warrant expiration: | Three years
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| Warrant strike price: | $1.35
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| Settlement date: | Dec. 11 (for $1.5 million)
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| Stock symbol: | Nasdaq: PRPH
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| Stock price: | $1.40 at close Dec. 10
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| Market capitalization: | $24.6 million
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