JRjr33, Inc. announced that it expects to receive $5 million in funding
October 18, 2017
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JRjr33, Inc. (AMEX:JRJR) announced that it has entered into securities purchase agreement with certain investors for a private placement of 14.0% original issue discount senior secured guaranteed convertible term loan note for gross proceeds of $5,000,000 on October 19, 2017. The note will be issued at discount of 5% and will bear interest at a fixed rate of 14% per annum. The note will mature on October 19, 2020 and are convertible, at any time after the issuance date at the option of the investor, into shares of the company’s common stock at a conversion price equal to $0.4652 per share, subject to adjustment as set forth in the notes. Commencing in April 2018, the investor shall have the right, at the option, to require the company to redeem up to an aggregate amount of $150,000 of the outstanding principal amount of the notes per month. The notes may be prepaid by the company at any time after October 19, 2018 provided that certain equity conditions are satisfied or upon a change of control, by paying an amount in cash after October 19, 2018 but prior to October 19, 2019 equal to 110% of then outstanding principal balance and all accrued and unpaid interest due thereon or after October 19, 2019 and by paying an amount in cash equal to 105% of the then outstanding principal balance and all accrued and unpaid interest due thereon. The company will also issue 2,625,000 share purchase warrants of the company shares at par value $0.0001 per share. The warrants are exercisable for 2,625,000 shares of common stock at an exercise price of $0.5566 per share beginning on October 19, 2017 and expiring on October 19, 2021. The company issued securities pursuant to exemption provided under Regulation D.
JRjr33, Inc. (JRJR), formerly CVSL Inc., offers a platform of direct-to-consumer brands. The Company operates through the segments, which include Gourmet Food, Nutritional and Wellness, Home Decor, Publishing and Printing, and Other. The Gourmet Food Products segment consists of operations related to the production and sale of hand-crafted spices, oils and other food products from around the world. The Home Decor segment consists of operations related to the production and sale of premium hand-crafted baskets, and the selling of products for the home, including pottery, cleaning, health, beauty, home, outdoor and customizable vinyl expressions for display. The Nutritionals and Wellness segment consists of operations related to the selling of nutritional supplements and skin care products. The Publishing and Printing Segment consists of the operations of Happenings Communications Group, Inc. and Paperly, Inc. The Other Segment consists of the operations of Tomboy Tools, Inc.