By Sheri Kasprzak
Atlanta, March 22 - Standard Management Corp. said it has received $4.75 million in the private placement of a secured convertible term note.
The company sold the note to Laurus Master Fund Ltd.
The note is due March 21, 2008 and bears interest at Prime rate plus 200 basis points, with a 7.25% floor. If the company's stock increases above certain levels, the interest rate may be reduced.
Laurus may convert the outstanding principal and unpaid interest into common shares at $3.28 each.
Laurus also received a warrant for 532,511 shares at $3.90 each for five years.
Based in Indianapolis, Standard Management is a financial holding company for Standard Life Insurance Co. of Indiana. The company plans to use the proceeds for the expansion of its health services segment.
| Issuer: | Standard Management Corp.
|
| Issue: | Secured convertible term note
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| Amount: | $4.75 million
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| Maturity: | March 21, 2008
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| Coupon: | Prime rate plus 200 basis points, 7.25% floor
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| Conversion price: | $3.28
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| Warrants: | For 532,511 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $3.90
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| Investors: | Laurus Master Fund Ltd.
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| Settlement date: | March 22
|
| Stock price: | $2.96 at close March 21
|
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