CA - Else Nutrition announces convertible security funding deal for up to $13.75M
- Else Nutrition ( OTCQX:BABYF ) on Monday announced a definitive convertible security funding deal with Lind Global Fund II, which is managed by Lind Partners, a New York-based institutional fund manager.
- The company will issue an initial convertible security with a face value of $5.1M.
- On closing, the initial convertible security will have a 36-month maturity date, and will be convertible into Else ( OTCQX:BABYF ) shares after a 120-day lock-up period.
- Lind will be able to convert 1/20th of the face value each month at a conversion price equal to 85% of the five-day volume weighted average price of the shares immediately prior to each conversion.
- The outstanding face value of the convertible security, after 180 days, may be repaid in cash at the discretion of Else ( OTCQX:BABYF ), with a 5% premium.
- Following the initial convertible security issuance, Else ( OTCQX:BABYF ) would have the right to draw a further $1.25M and thereafter an optional follow-on investment of up to $6.5M in exchange for additional convertible notes.
- Proceeds from the issue of the initial convertible security will be used for clinical trials as well as general working capital.
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Else Nutrition announces convertible security funding deal for up to $13.75M