Eight-month convertible note was sold with warrants for 470,000 shares
By Devika Patel
Knoxville, Tenn., Jan. 28 – Spiral Toys Inc. raised $200,000 in a private placement of $216,000 original issue discount convertible promissory notes on Jan. 22, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The notes are due in eight months and have a one-time interest payment of 8%. The notes convert to common shares at 65% of the lowest sale price during the 15 consecutive trading days preceding conversion.
The notes may be prepaid in the first 180 days without penalty.
Investors also received warrants for 470,000 shares, which are each exercisable at $0.50 for three years. The strike price is a 72.41% premium to the Jan. 21 closing share price of $0.29.
The Agoura Hills, Calif., company develops and sells entertainment products, toys and mobile applications in the mobile-connected space.
| Issuer: | Spiral Toys Inc.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $216,000
|
| Maturity: | Eight months
|
| Price: | $200,000
|
| Coupon: | 8%
|
| Conversion price: | 65% of the lowest sale price during the 15 consecutive trading days preceding conversion
|
| Call: | In the first 180 days
|
| Warrants: | For 470,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Jan. 22
|
| Stock symbol: | OTCBB: STOY
|
| Stock price: | $0.29 at close Jan. 21
|
| Market capitalization: | $14.41 million
|
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