By Sheri Kasprzak
New York, June 29 - Red Mile Entertainment, Inc. completed a $2.05 million private placement of convertible promissory notes.
The 10% notes were sold to 19 investors.
The notes are due the earlier of one year or upon the merger or consolidation of Red Mile with another entity or a sale in which more than half of the company's voting power is transferred in a private placement to one person.
If, before maturity, the company completes an equity financing of $10 million, the notes will automatically convert into common shares at the price per share of the equity financing.
The investors will receive, upon conversion, one half-share warrant for every share issuable upon conversion. The warrants are exercisable at $2.75 each for two years following the subsequent equity offering.
Located in Sausalito, Calif., Red Mile develops interactive entertainment software.
| Issuer: | Red Mile Entertainment, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $2.05 million
|
| Maturity: | The earlier of one year or upon the completion of a $10 million equity financing
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | At the price of subsequent $10 million financing
|
| Warrants: | One half-share warrant for every share issuable upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $2.75
|
| Settlement date: | June 27
|
| Stock symbol: | OTCBB: RDML
|
| Stock price: | $3.50 at close June 27
|
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