By Sheri Kasprzak
Atlanta, March 15 - Fast Eddie Racing Stables Inc. said it has raised $3 million in a private placement of a secured convertible term note.
The company sold the note to Laurus Master Fund Ltd.
The note bears interest at Prime rate plus 300 basis points and is convertible into common shares at $0.83 each. The note matures March 9, 2008.
Laurus also received warrants for up to 1,084,338 shares at $1.00 each through March 9, 2012.
Laurus also has an option to buy an additional 643,700 shares at a per-share price of $0.01 each, exercisable through March 9, 2013.
The company may prepay or redeem the note in whole or part at any time by paying an amount equal to 125% of the principal or 120% of the non-amortizing principal amount to be redeemed.
Based in New York, Fast Eddie operates horse-racing stables. It plans to use the proceeds for general working capital or approved acquisitions.
| Issuer: | Fast Eddie Racing Stables Inc.
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| Issue: | Secured convertible term note
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| Amount: | $3 million
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| Maturity: | March 9, 2008
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| Coupon: | Prime plus 300 basis points
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| Conversion price: | $0.83
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| Call: | Redeemable or prepayable at 125% of the amortizing principal or 120% of the non-amortizing principal amount
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| Warrants: | For 1,084,338 shares
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| Warrant expiration: | $1.00
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| Warrant strike price: | March 9, 2012
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| AIRs: | For up to 643,700 shares
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| AIRs expiration: | March 9, 2013
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| AIRs price: | $0.01
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| Investors: | Laurus Master Fund Ltd.
|
| Settlement date: | March 9
|
| Stock price: | $0.31 at close Dec. 31 (last trade)
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