By Devika Patel
Knoxville, Tenn., July 17 - Driftwood Ventures, Inc. increased the size of a loan with Trinad Capital Master Fund, Ltd. and Back Bay LLC to $9 million from $7 million on July 15, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The loan settled on July 7.
The loan is evidenced by senior secured convertible promissory notes. The company settled $7 million of the notes on July 7 and may issue more notes in future tranches.
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, 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
|
| Settlement date: | July 7 (for $7 million)
|
| Upsized: | July 15
|
| Stock symbol: | OTCBB: DFTW
|
| Stock price: | $1.45 at close July 7
|
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