California-based XFit Brands Inc. said in an SEC filing dated Feb. 7 that it entered into a preferred stock purchase agreement with Pacific Investment Management Co. LLC on Feb. 1.
Under the agreement, PIMCO exchanged $3.5 million of 9% senior secured notes with interest and penalties along with the associated common stock purchase warrants for 1,000 shares of series A convertible preferred stock of the fitness products company.
These shares can be converted into 66,000 shares of common stock on 61 days' notice.
The agreement is part of an overall restructuring of XFit's capitalization, including the reservation of an additional 66 million shares for members of management and 50 million common shares, which were offered for cash or other considerations priced at 1.5 cents per share.
