By Sheri Kasprzak
New York, Dec. 7 - Medical Media Television, Inc. said it entered into a term sheet for a $1 million convertible note.
The one-year note bears interest at 20% annually and is convertible into shares at maturity at $0.40 each.
Interest on the note is payable either in cash or in series C convertible preferred stock with a value of $1.00 per share. The preferreds are convertible into common shares at a 10% discount to the average closing price for the 20 trading days before conversion.
The investor will make the loan in installments of $175,000 on Nov. 30; $175,000 on Dec. 4; $250,000 on Dec. 15 and $325,000 on Jan. 15, 2006.
The company will also issue warrants for 2.5 million shares, exercisable at $0.75 each for five years.
Based in Tampa, Medical Media produces educational programming focused on health care for pets.
| Issuer: | Medical Media Television, Inc.
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| Issue: | Convertible note
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| Amount: | $1 million
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| Maturity: | One year
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| Coupon: | 20%
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| Price: | Par
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| Yield: | 20%
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| Conversion price: | $0.40
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| Warrants: | For 2.5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.75
|
| Settlement date: | Nov. 30
|
| Stock price: | $0.65 at close Nov. 30
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