Investor also receives warrants; proceeds used for corporate purposes
By Devika Patel
Knoxville, Tenn., May 1 - MeetMe, Inc. negotiated an $8 million loan agreement with Venture Lending & Leasing VI, Inc. on April 29, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The company has already drawn $5 million.
The 11% loan may be prepaid in whole, but not in part.
Venture Lending also received warrants, which are exercisable at $1.96 until Feb. 28, 2024. The strike price reflects a 3.45% discount to the April 26 closing share price of $2.03.
Proceeds will be used for general corporate purposes.
The social network is based in New Hope, Pa.
| Issuer: | MeetMe, Inc.
|
| Issue: | Term loan
|
| Amount: | $8 million
|
| Coupon: | 11%
|
| Call: | Yes
|
| Warrants: | Yes
|
| Warrant expiration: | Feb. 28, 2024
|
| Warrant strike price: | $1.96
|
| Investors: | Venture Lending & Leasing VI, Inc.
|
| Settlement date: | April 29 (for $5 million)
|
| Stock symbol: | NYSE: MEET
|
| Stock price: | $2.03 at close April 26
|
| Market capitalization: | $70.43 million
|
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