By Devika Patel
Knoxville, Tenn., Jan. 29 - Dynamic Leisure Corp. closed a $1.2 million private placement of secured convertible debentures that priced Jan. 22.
The company issued two 12% notes to Trafalgar Capital Specialized Investment Fund, Luxembourg. One of the debentures was for $1 million and the other was for $200,000.
The notes are due in 42 months and are convertible into common shares at the lesser $0.10 per share or 85% of the lowest daily closing bid price of the company's common stock, as quoted by Bloomberg, LP, for the five trading days immediately prior to conversion.
Interest on the notes will be payable monthly in cash or common stock at a value equal to the closing bid price on the date the interest is due or when the interest is paid, at Trafalgar's option.
The $1 million debenture requires interest only payments for the first six months, after which this debenture will be redeemed over the remaining 24 months through monthly principal and interest at a 10% redemption premium.
The $200,000 debenture requires redemption over 12 months after closing through monthly principal and interest also at a 10% redemption premium.
If the company raises more than $500,000 in the life of the debentures, it is required to redeem 30% of the outstanding principal of the debentures.
Trafalgar also received a warrant for 15 million shares, exercisable for five years. The warrant strike price will be adjustable.
Proceeds will be used to acquire a travel company.
Based in Tampa, Fla., Dynamic provides software to online travel package companies.
| Issuer: | Dynamic Leisure Corp.
|
| Issue: | Secured convertible debentures
|
| Amount: | $1.2 million
|
| Maturity: | 42 months
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | Equal to the lesser of $0.10 per share or 85% of the lowest daily closing bid price of the company's common stock for the five trading days immediately prior to conversion
|
| Warrants: | For 15 million shares
|
| Warrant expiration: | Five years
|
| Investor: | Trafalgar Capital Specialized Investment Fund, Luxembourg
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 29
|
| Stock symbol: | OTCBB: DYLI
|
| Stock price: | $0.73 at close Jan. 22
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
