K2 Inc. announced it has completed the transaction with k1 Ventures Ltd., a Singapore-based investment company, in which K2 sold $25.0 million of its 7.25% convertible subordinated debentures due March 2010. The agreement was previously announced on December 10, 2002.

The debentures are initially convertible into 2,097,315 shares of K2 common stock at $11.92 per share. Pursuant to the agreement, k1 Ventures also received warrants to purchase 524,329 additional shares of common stock at $13.91 per share, exercisable within five years. At December 31, 2002, K2 had approximately 17.9 million common shares outstanding.