By Devika Patel
Knoxville, Tenn., April 4 - Legend Media, Inc. arranged a $5 million private placement of convertible preferred shares and warrants on March 31, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company will sell 2,083,333 series A convertible preferred shares to Maoming China Fund.
Maoming also will receive warrants to buy 1 million common shares, which are exercisable at $2.50 for three years.
The deal will be conducted in tranches, with the first settlement to occur on the later of April 12 or 15 days after the company's first acquisition of a media advertising business operating in the People's Republic of China.
In that tranche, Maoming will receive 1.25 million preferreds and 600,000 warrants for $3million.
The second settlement will occur on the later of May 12 or 15 days after the company's second acquisition of a media advertising business operating in the People's Republic of China.
In that tranche, Maoming will receive 833,333 preferreds and 400,000 warrants for $2 million.
The preferreds are convertible into common shares at an initial conversion price of $2.40.
Based in Beijing, China, Legend is a media company.
| Issuer: | Legend Media, Inc.
|
| Issue: | Series A convertible preferred stock, convertible into common shares, warrants
|
| Amount: | $5 million
|
| Shares: | 2,083,333
|
| Conversion price: | $2.40
|
| Warrants: | For 1 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.50
|
| Investor: | Maoming China Fund
|
| Pricing date: | March 31
|
| Settlement dates: | The later of April 12 and company's first acquisition of media business in China (for $3 million), the later of May 12 and company's second acquisition of media business in China (for $2 million)
|
| Stock symbol: | OTCBB: LEGE
|
| Stock price: | $3.20 at close March 31
|
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