By Sheri Kasprzak
Atlanta, Dec. 1 - Family Room Entertainment Corp. said Wednesday it has received $2 million in a private placement of a convertible note and warrants.
The company sold $2 million in a convertible note, which bears interest at Prime plus 400 basis points with a floor of 10%. The note matures Nov. 17, 2006.
The note is convertible into shares at $0.15 each and also includes warrants for 23,333,334 class A and class B shares at $0.15 per share.
The class A warrants expire in five years and the class B warrants in 180 days.
The note and warrants were purchased by Longview Equity Fund LP.
Family Room, based in Beverly Hills, Calif., develops, produces and performs production-related services for the entertainment industry. It plans to use $1 million of the proceeds from the deal to acquire rights and for an independent film production. The remainder of the funds will be used for working capital.
| Issuer: | Family Room Entertainment Corp.
|
| Issue: | Convertible note
|
| Amount: | $2 million
|
| Maturity: | Nov. 17, 2006
|
| Coupon: | Prime rate plus 400 basis points (10% floor)
|
| Price: | Par
|
| Conversion price: | $0.15
|
| Warrants: | For 23,333,334 class A and B warrants
|
| Warrant expiration: | Five years for class A; 180 days for class B
|
| Warrant strike price: | $0.15
|
| Investors: | Longview Equity Fund LP
|
| Pricing date: | Nov. 17
|
| Settlement date: | Dec. 1
|
| Stock price: | $0.09 at close Nov. 17
|
| Stock price: | $0.085 at close Dec. 1
|
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