By Devika Patel
Knoxville, Tenn., Aug. 15 - Driftwood Ventures, Inc. settled a second tranche of a $9 million loan on Aug. 13, according to an 8-K filed Friday with the Securities and Exchange Commission.
The loan's first tranche settled for $7 million with Trinad Capital Master Fund, Ltd. and Back Bay LLC on July 7 and the company increased the size to $9 million from $7 million on July 15.
In this tranche, S.A.C. Venture Investments, LLC invested $1.85 million.
The loan is evidenced by senior secured convertible promissory notes.
The notes carry a 5% coupon and mature on July 7, 2009.
The total number of warrants the company plans to issue will now be 8,181,818. Trinad has already received warrants for 2,272,727 common shares and Black Bay received warrants for 1,818,182 shares, while S.A.C. got warrants for 1,681,818 shares, each of which is exercisable at $0.01 for five years.
Lake Worth, Fla.-based Driftwood Ventures is a hotel and motel consultant.
| Issuer: | Driftwood Ventures, Inc.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $9 million
|
| Maturity: | July 7, 2009
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Warrants: | For 8,181,818 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.01
|
| Investor: | Trinad Capital Master Fund, Ltd. and Back Bay LLC (for $7 million), S.A.C. Venture Investments, LLC (for $1.85 million)
|
| Settlement date: | July 7 (for $7 million), Aug. 13 (for $1.85 million)
|
| Upsized: | July 15
|
| Stock symbol: | OTCBB: DFTW
|
| Stock price: | $1.45 at close July 7
|
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