By Sheri Kasprzak
New York, Nov. 21 - Headliners Entertainment Group, Inc. said it has refinanced its $7,953,698 convertible debenture held by Cornell Capital Partners, LP.
The debenture, which had been issued on Aug. 19, was replaced with an $8,192,309 debenture.
The new debenture matures Nov. 16, 2010, bears interest at 10% annually and is convertible into common shares at 80% of the lowest closing bid price during the five trading days before conversion.
Headliners must pay $400,000 in monthly payments on the debenture.
The original debenture bore interest at 12% annually and was convertible into common shares at $0.20 each.
For the refinancing, Cornell received warrants for 10 million shares, exercisable at $0.20 each through Nov. 17, 2010.
Based in Montclair, N.J., Headliners owns and operates comedy clubs and dance clubs in New York and New Jersey.
| Issuer: | Headliners Entertainment Group, Inc.
|
| Issue: | Convertible debenture
|
| Amount: | $8,192,309
|
| Maturity: | Nov. 16, 2010
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.20
|
| Warrants: | For 10 million shares
|
| Warrant expiration: | Nov. 17, 2010
|
| Warrant strike price: | $0.20
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | Nov. 18
|
| Stock price: | $0.14 at close Nov. 18
|
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