By Laura Lutz
Des Moines, Nov. 30 - DigitalFX International, Inc. arranged a $7 million private placement of senior secured convertible notes and warrants, according to an 8-K filing with the Securities and Exchange Commission.
The convertibles will mature in three years and bear interest at 7.5% per year. Interest is payable quarterly.
The notes will be convertible at $2.80 per share.
Beginning one year after closing, DigitalFX will be able to force conversion if the average of the daily volume-weighted average price of its stock is at least $4.90 for 20 consecutive trading days.
The investors will receive five-year warrants for 875,000 shares, exercisable at $2.93 per share.
Maxim Group LLC is the placement agent.
Settlement was expected on Nov. 30.
Proceeds will be used for strategic initiatives and working capital.
DigitalFX is a Las Vegas-based digital communications and social networking company.
| Issuer: | DigitalFX International, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $7 million
|
| Maturity: | Three years
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion price: | $2.80
|
| Warrants: | For 875,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.93
|
| Agent: | Maxim Group LLC
|
| Pricing date: | Nov. 29
|
| Settlement date: | Nov. 30
|
| Stock symbol: | Amex: DXN
|
| Stock price: | $2.65 at close Nov. 29
|
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