New York, May 24 - iMedia International, Inc. said it sold $3.04 million of series A convertible preferred stock.
The preferreds pay a dividend of 6% and convert into common stock at a price of $0.40 per share.
Investors also received long-term warrants to buy 7.6 million shares of common stock for five years at $0.60 per share.
Crestview Capital Master Fund, LLC also received a short-term warrant for $1.2 million in preferred stock and a warrant identical to the long-term warrants but exercisable until the earlier of one day after the registration for the underlying common stock is declared effective or two years.
Atla Capital was lead placement agent with J.P. Turner & Co. as co-placement agent.
iMedia, a Santa Monica, Calif.-based maker of CD-ROMs and DVDs for marketing campaigns, will use proceeds for debt repayment and working capital.
| Issuer: | iMedia International, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $3.04 million
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| Short-term warrant: | For further $1.2 million of preferreds
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| Maturity: | May 23, 2007
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| Dividend: | 6%
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| Conversion price: | $0.40
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| Forced conversion: | If stock trades above $1.25 for 30 days
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| Warrants: | For 7.6 million shares
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| Warrant term: | 5 years
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| Warrant exercise price: | $0.60
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| Placement agent: | Atlas Capital (lead)
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| Settlement date: | May 23
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| Stock price: | $0.89 at close May 23
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