Deal will finance R&RTV Network, Video on Demand platform development
By Devika Patel
Knoxville, Tenn., Nov. 1 - Next 1 Interactive, Inc. arranged a $15 million equity line of credit with Lincoln Park Capital Fund, LLC on Oct. 26, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell common shares to Lincoln Park over 30 months in tranches of up to $500,000. It has already sold 400,000 shares to the investor for $200,000.
The purchase price for the shares will be based on market prices without any fixed discount.
Lincoln Park will also receive warrants. It received 800,000 warrants in the initial tranche, which are each exercisable at $1.00 for five years.
Lincoln Park received 487,805 shares as a commitment fee.
Josh Scheinfeld, managing member of Lincoln Park, said the financing was "very similar to a lot of our other transactions," deeming it more of a committed investment than an equity line.
"We bought $200,000 of unregistered stock and warrants," he said. "We will follow up with a firm, committed investment" once the company files a shelf registration.
"Some people who were very involved in the company introduced us to it," Scheinfeld said when asked how he became aware of Next 1. "I thought it was a very interesting investment opportunity."
Scheinfeld said the company was "not well known, but it has a very interesting business model that if they are able to pull it off ... it could become a very large company."
"This might be a tremendously undervalued situation," he added, noting that the company's stock "could double in price" if it is able to drive forward.
Proceeds will be used for the development of the R&RTV Network and the Travel and Real Estate Video on Demand platforms. Any additional funds will be used to improve other lines of business and to make acquisitions in the same sector.
Weston, Fla.-based Next 1 Interactive is an interactive media company with a focus on video and media advertising delivered over internet and television platforms.
Stephanie N. Rotondo contributed to this article
| Issuer: | Next 1 Interactive, Inc.
|
| Issue: | Equity line of credit
|
| Amount: | $15 million
|
| Tenor: | 30 months
|
| Price: | No fixed discount
|
| Warrants: | 800,000
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | 487,805 shares
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 26 (for $200,000)
|
| Stock symbol: | OTCBB: NXOI
|
| Stock price: | $0.50 at close Oct. 26
|
| Market capitalization: | $21.52 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.
