Company sells 8% 17-month notes with five-year warrants to Tonaquint
By Devika Patel
Knoxville, Tenn., April 9 - Digital Development Group Corp. settled a $340,000 private placement of 8% secured convertible promissory notes with Tonaquint, Inc. on April 3, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The note carries an original issue discount of $30,000.
The note matures in 17 months and is convertible into common shares at $0.20 per share. The conversion price is a 122.22% premium to the April 2 closing share price of $0.09.
Tonaquint also received warrants for 1.4 million common shares. The warrants are each exercisable at $0.20 for five years. The strike price is also a 122.22% premium to the April 2 closing share price.
The investor was paid a $10,000 fee.
The Santa Monica, Calif., company provides a backend technological service to enable content providers to deliver their content across multiple platforms using existing internet protocol services.
| Issuer: | Digital Development Group Corp.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $340,000
|
| Maturity: | 17 months
|
| Coupon: | 8%
|
| Price: | Discounted by $30,000
|
| Conversion price: | $0.20
|
| Warrants: | For 1.4 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.20
|
| Investor: | Tonaquint, Inc.
|
| Fees: | $10,000
|
| Settlement date: | April 3
|
| Stock symbol: | OTCBB: DIDG
|
| Stock price: | $0.09 at close April 2
|
| Market capitalization: | $4.44 million
|
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