AB Opportunity, AB Value Partners also get warrants for 550,000 shares
By Toni Weeks
San Luis Obispo, Calif., May 23 - Cosi, Inc. completed a $2.5 million private placement of senior secured promissory notes on May 20, according to an 8-K filing with the Securities and Exchange Commission.
The company sold a $2 million promissory note to AB Opportunity Fund LLC and a $500,000 promissory note to AB Value Partners, LP.
The 9% notes are due in three years. The company may elect to pay the first two interest payments in kind at a rate of 11%.
The investor also received three-year warrants for 550,000 shares, with each warrant exercisable at $0.01.
The investor was paid a 3.5% fee.
Cosi is a national fast-casual restaurant chain based in Deerfield, Ill.
| Issuer: | Cosi, Inc.
|
| Issue: | Senior secured promissory note
|
| Amount: | $2.5 million
|
| Maturity: | Three years
|
| Coupon: | 9%
|
| Warrants: | For 550,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.01
|
| Investors: | AB Opportunity Fund LLC (for $2 million), AB Value Partners, LP (for $500,000)
|
| Fees: | 3.5%
|
| Settlement date: | May 20
|
| Stock symbol: | Nasdaq: COSI
|
| Stock price: | $1.22 at close May 19
|
| Market capitalization: | $23.8 million
|
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