Contact Information: CONTACT: Chris Sharng Natural Health Trends 972-241-4080 Email Contact
Natural Health Trends Corp. Completes Private Placement Financing
| Source: Natural Health Trends Corp.
DALLAS, TX -- (MARKET WIRE) -- May 7, 2007 -- Natural Health Trends Corp. (NASDAQ : BHIP )
announced today that it has consummated a private placement financing
generating gross proceeds of approximately $3.0 million. The Company plans
to use the net proceeds from the financing to provide additional working
capital for the Company.
The financing consisted of the sale of 1,759,307 shares of the Company's
Series A Convertible Preferred Stock at a price of $1.70 per share. The
preferred stock is convertible at the election of the holder into an
equivalent number of shares of common stock. The financing also included
the sale of warrants evidencing the right to purchase 1,759,307 shares of
the Company's common stock at a purchase price of $0.00001 per underlying
share of common stock. The warrants are exercisable at any time during the
period beginning six months after their issuance and ending six years
following their issuance. The exercise price of the warrants varies from
$3.80 to $5.00 per share, depending on the time of exercise. In connection
with the financing, the Company agreed, subject to certain terms and
conditions, to exercise its reasonable best efforts to register for resale
under the Securities Act the shares of common stock issuable upon
conversion of the preferred stock and exercise of the warrants.
Mr. Chris Sharng, President of Natural Health Trends Corp., said: "We are
pleased that the placement is fully subscribed. Most importantly, most of
the proceeds come from our own members in Greater China. We think it is
strategically advantageous that more of our members align their interests
with those of our stockholders. Their subscription represents their
commitment to the Company and the business."
The sale of the preferred stock and warrants was made pursuant to a Stock
and Warrant Purchase Agreement between the Company and each purchaser. The
sale was made to qualified U.S. buyers in reliance on Regulation D under
the Securities Act of 1933 and to certain non-U.S. persons in transactions
outside the United States in reliance on Regulation S under the Securities
Act. Neither the preferred stock nor the warrants are registered under the
Securities Act and, unless so registered, may not be offered or sold in the
United States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state and foreign
securities laws. This press release is being issued pursuant to and in
accordance with Rule 135c and shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of any
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
About Natural Health Trends Corp.
Natural Health Trends Corp. is an international direct-selling and
e-commerce company operating through its subsidiaries in 15 countries
throughout Asia, North America, Europe and Latin America. The Company
markets premium quality personal care products under the NHT Global
(formerly Lexxus International) brand. Additional information can be found
on the Company's Website, and management encourages interested parties to
register for updated corporate information via e-mail on the Company's
homepage, www.naturalhealthtrendscorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 -- Forward-looking statements in this release do not constitute
guarantees of future performance. Such forward-looking statements are
subject to risks and uncertainties that could cause our actual results to
differ materially from those anticipated. Such risks and uncertainties
include the risks and uncertainties detailed in our Annual Report on Form
10-K for the fiscal year ended December 31, 2006 filed with the Securities
and Exchange Commission. We assume no obligation to update any
forward-looking information contained in this press release or with respect
to the announcements described herein.