Naturade, Inc. Announces $4 Million Investment in Company; Proceeds Earmarked for Settlement Payoff and Working Capital
PARAMOUNT, CALIFORNIA--Naturade, Inc. (OTCBB:NRDC - news) today announced Health Holdings and Botanicals, Inc. will invest $4 million in the company.
Naturade said the proceeds will be used to fund the recently announced settlement of litigation in Texas of approximately $2 million and for working capital.
Health Holdings and Botanicals, Inc. is a consortium of investors led by the Doyle & Boissiere Fund, LLC, an equity investment fund headquartered in Burlingame, CA, which, prior to the new financing, owns 55 percent of Naturade, Inc.
The investment will be for convertible debt with an annual eight percent coupon maturing on July 31, 2004. Cash will be infused in two drawdowns of $3 million, which occurred on August 9, 1999 and $1 million to be drawn down at a later date. Any portion of the cash advances may be converted into shares at a conversion price of $0.75 per share, or at the fair market value of Naturade's common stock on the date of notice by Health Holdings.
Lionel P. Boissiere, Jr., President of Health Holdings and Botanicals, said, ''This additional investment in Naturade is a strong vote of confidence in the company's strategy, its management and its strategic new products and packaging. With the introduction recently of The Chinese Way line of herbs and a new marketing program, as well as the management team, we believe that Naturade is clearly on track for recovery.''
Bill Stewart, chief executive officer of Naturade, said, ''We are gratified that Health Holdings has the continued confidence in our position and strategy to make this investment. And, with the Texas litigation now behind us, Naturade will be able to focus solely on its new approach to the marketplace, its new products and its new distribution channels.'' |
