Published on 1/13/2016 in the Prospect News PIPE Daily.
PFO sells $500,000 more 8% discounted convertibles for $450,000
Debentures due 2017 sold in tranches with warrants to Hillair Capital
By Devika Patel
Knoxville, Tenn., Jan. 13 – PFO Global, Inc. settled a private placement of $500,000 original issue discount senior secured convertible debentures with Hillair Capital Investments LP for $450,000 on Jan. 7, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The investor bought $252,000 of debentures for $225,000 on Nov. 13 and $728,000 of debentures for $650,000 on Nov. 30.
The 8% debentures convert to common stock at $2.00 per share. They may be redeemed at 120 after six months. The first and second tranche of debentures are due Jan. 1, 2017, with the third tranche due on Feb. 1, 2017.
Hillair also received warrants for 126,000 shares in the first tranche, warrants for 364,000 shares in the second tranche and warrants for 126,000 shares in the third tranche. The warrants are each exercisable at $2.40 for five years. The strike price is a 137.62% premium to the Nov. 12 closing share price of $1.01. The conversion price is a 98.02% premium to that price.
The Irving, Texas, company manufactures prescription lenses and finished eyewear.
| Issuer: | PFO Global, Inc.
|
| Issue: | Original issue discount senior secured convertible debentures
|
| Amount: | $1.48 million
|
| Maturity: | Jan. 1, 2017, Feb. 1, 2017
|
| Price: | $1,325,000
|
| Coupon: | 8%
|
| Conversion price: | $2.00
|
| Warrants: | For 616,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.40
|
| Investor: | Hillair Capital Investments LP
|
| Call option: | At 120 after six months
|
| Settlement dates: | Nov. 13 ($252,000 debentures for $225,000), Nov. 30 ($728,000 debentures for $650,000), Jan. 7 ($500,000 debentures for $450,000)
|
| Stock symbol: | OTCBB: PFGB
|
| Stock price: | $1.01 at close Nov. 12
|
| Market capitalization: | $20.92 million
|
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