Youngevity International Inc., an omni-direct lifestyle company based in Chula Vista, California-based, has completed its previously announced public offering of its Series B Convertible Preferred Stock in which it raised aggregate proceeds of $3,621,143. Youngevity received net proceeds of $3,328,761 in the offering.
Each preferred share was priced at $9.50 and is initially convertible at any time, in whole or in part, at the option of the holders, into two shares of common stock of Youngevity International, NASDAQ, YGYI.
Tripoint Global Equities acted as lead managing selling agent and book runner through its BANQ® platform.
The completion of the offering creates a forced conversion of debt Youngevity sold in its 2017 private placement into 1,577,032 shares of common stock at a conversion price of $4.60 and relieves Youngevity of $7.3 million of existing debt.
Proceeds from the sale of the convertible preferred are expected to be used for working capital in the company’s coffee and direct selling divisions.
“We structured this offering in a manner that allowed broad participation, so it was more than just a capital raise for us,” said Dave Briskie, president and CFO of Youngevity. “For years we had discussed the possibility of creating an opportunity for our loyal distributors and customers to become shareholders in our company. Utilizing Tripoint’s BANQ platform allowed us to meet this objective as it provided the opportunity for participation at a low minimum investment. Additionally, we realized that by reaching a certain threshold in this raise we had the opportunity to convert $7.3 million of debt into permanent capital, equity, and obviously relieve our balance sheet of that debt. We are extremely pleased that with this closing we have achieved over a $10.5 million improvement to our balance sheet.”
“We are pleased to be a part of the Youngevity offering and provide the seamless conduit utilizing our BANQ platform to all to allow the distributors to become shareholders and help contribute to the future success of the company,” stated Mark Elenowitz, CEO of TriPoint Global Equities.