By Devika Patel
Knoxville, Tenn., May 2 - Mobiventures Inc. took in $2 million in a private placement of secured convertible redeemable debentures, according to an 8-K filed Friday with the Securities and Exchange Commission.
Trafalgar Capital Specialized Investment Fund bought the debentures, which mature on March 31, 2010, and if the company defaults on its mandatory redemption obligation, Trafalgar will have the right to convert the debentures into common shares at a conversion price equal to 85% of the market price at the time of conversion.
The debentures bear interest at the rate of 10% per annum, compounded monthly. The company is obligated to repay the principal amount in equal monthly installments of principal plus interest and a 15% redemption premium.
Proceeds will be used to fund the company's planned acquisition of all of the issued share capital of Purepromoter Ltd.
Mobiventures, based in New York, is a provider of mobile applications, content and services.
| Issuer: | Mobiventures Inc.
|
| Issue: | Secured convertible redeemable debentures
|
| Amount: | $2 million
|
| Maturity: | March 31, 2010
|
| Coupon: | 10%, compounded monthly
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | 85% of the market price at the time of conversion
|
| Warrants: | No
|
| Settlement date: | May 2
|
| Stock symbol: | OTCBB: MBLV
|
| Stock price: | $0.05 at close May 2
|
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