Company sells 3% one-year notes with 25% warrant coverage in offering
By Devika Patel
Knoxville, Tenn., Jan. 4 - NeuMedia, Inc. settled a $7 million private placement of 3% unsecured subordinated convertible notes on Dec. 29, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The note matures in one year and is convertible at any time into common shares at 75% of the average trading price of the stock for the 30-day period immediately preceding the conversion; the conversion price must be at least $0.50.
The investor also received 25% warrant coverage. The warrant is exercisable for five years at a strike price equal to the note's conversion price.
NeuMedia is a Clifton, N.J.-based entertainment publisher.
| Issuer: | NeuMedia, Inc.
|
| Issue: | Unsecured subordinated convertible note
|
| Amount: | $7 million
|
| Maturity: | One year
|
| Coupon: | 3%
|
| Conversion price: | 75% of the average trading price of the stock for the 30-day period immediately preceding the conversion, floor of $0.50
|
| Warrants: | 25% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 75% of the average trading price of the stock for the 30-day period immediately preceding the conversion, floor of $0.50
|
| Settlement date: | Dec. 29
|
| Stock symbol: | OTCBB: MNDL
|
| Stock price: | $0.65 at close Dec. 29
|
| Market capitalization: | $30 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
