Hauser Reduces Credit Amid Investment by Zatpack

November 1, 2000

1 Min Read
Hauser Reduces Credit Amid Investment by Zatpack


Hauser Reduces Credit Amid Investment by Zatpack

BOULDER, Colo.--Hauser (NASDAQ:HAUS) amended its credit facility with WellsFargo Bank N.A. to reduce the borrowing amount, a move that was permitted onlyafter Zatpack Inc. agreed to purchase a $3 million Subordinated Promissory Notethat is subordinate to the credit facility. With the new facility, Hauserreduced its borrowing amount from $24.5 million to $17 million by March 31,2001.

The note purchased by Zatpack, which owns 46 percent of HAUS shares, willaccrue at 6.5-percent interest, is payable in three years and has five-yearwarrants attached. Under these warrants, Zatpack can purchase 992,789 shares ofHauser's common stock at about $.59 per share. The proceeds from the sale of thenote will be used by Hauser to repay some of its outstanding debt.

Subscribe and receive the latest insights on the health and nutrition industry.
Join 37,000+ members. Yes, it's completely free.

You May Also Like