By Sheri Kasprzak
Atlanta, Jan. 11 - Pacificap Entertainment Holdings Inc. closed the first tranche of a $2.8 million private placement for $1.4 million.
The company sold 10% secured convertible notes to a New York-based institutional investor. The notes mature in two years.
The notes are convertible into common shares at the lesser of $0.02 each or 60% of the average three lowest intra-day trading prices for 20 days before conversion.
The remainder of the funds is expected to be raised in two separate tranches in 90 to 120 days.
The investors in the offering include AJW Offshore, Ltd., AJW Qualified Partners LLC, AJW Partners LLC and New Millennium Capital Partners II LLC.
The investors will also receive warrants for 2.8 million shares at $0.02 each for five years.
Based in Los Angeles, Pacificap finances and markets films and produces and distributes motion pictures. The proceeds from the deal will be used to develop the company's corporate infrastructure and to increase its activities and offerings in media and entertainment.
| Issuer: | Pacificap Entertainment Holdings Inc.
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| Issue: | Convertible secured notes
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| Amount: | $1.4 million
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| Maturity: | Two years
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | The lesser of $0.02 or 60% of the average three lowest intra-day prices for 20 consecutive days
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| Warrants: | For 2.8 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.02
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| Investors: | AJW Offshore, Ltd., AJW Qualified Partners LLC, AJW Partners LLC and New Millennium Capital Partners II LLC
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| Settlement date: | Jan. 11
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| Stock price: | $0.02 at close Jan. 11
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