US salad dressings and condiments producer Vita Food Products has announced that MDB Alternative Investments, a company controlled by Vita director Howard Bedford, has transferred the remaining US$2m of its $3m aggregate investment in the company in exchange for a note issued to MDB dated 15 June, 2007.
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Vita said the note has been secured by a second mortgage on the company’s property at 2222 West Lake Street in Chicago, Illinois, and bears interest at an annual rate of 6%. It will mature on 31 August, 2007 but is prepayable without penalty.
The company said it intends to prepay the note upon its issuance to MDB of 2,400,000 shares of common stock and warrants to purchase a total of 2,000,000 additional shares in accordance with an agreement between Vita and Bedford dated 14 May, 2007. At that time, the entire $3m will become an equity investment in the company, Vita said.
