By Sheri Kasprzak
New York, July 5 - Headliners Entertainment Group Inc. said it has received $2.5 million in a private placement of a $3 million convertible debenture and Ckrush Entertainment, Inc. closed a $3.8 million private placement of revenue participation rights to fund two movies.
Headliners sold the debenture to Cornell Capital Partners, LP.
The 12% debenture was priced at 83, matures on Dec. 31, 2006 and is convertible into common shares at $0.55 each.
The proceeds from the offering were paid to Ckrush Entertainment to invest in the production and distribution of two movies - "Beer League" and "TV The Movie."
Ckrush also closed a private placement of revenue participation rights for $3.8 million on June 28. Ckrush, a subsidiary of Cedric Kushner Promotions, Inc., sold 69 units of the revenue participation rights at $55,072.46.
The revenue participation rights pay investors 100% of the purchase price plus a 20% preferred return.
Based in Montclair, N.J., Headliners owns and operates comedy clubs and dance clubs in New York and New Jersey. The proceeds from both will be used to produce the two movies. Cedric Kushner is an entertainment company based in New York.
Issuer: | Headliners Entertainment Group Inc.
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Issue: | Convertible debenture
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Amount: | $3 million
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Proceeds: | $2.5 million
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Maturity: | Dec. 31, 2006
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Coupon: | 12%
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Price: | 83
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Conversion price: | $0.55
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Investor: | Cornell Capital Partners, LP
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Settlement date: | June 28
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Stock price: | $0.44 at close June 28
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Issuer: | Ckrush Entertainment, Inc.
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Issue: | Revenue participation rights
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Amount: | $3.8 million
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Units: | 69
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Price: | $55,072.46
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Settlement date: | June 28
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Stock price: | $0.27 at close June 28 (for Cedric Kushner)
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