By Sheri Kasprzak
New York, Oct. 23 - Red Mile Entertainment, Inc. completed a $5,824,000 private placement of senior secured convertible debentures.
The company sold 5,824 debentures at $1,000 apiece to 74 investors.
The debentures are due Oct. 19, 2008, bear interest at 5.5% annually and are convertible into common shares at $1.75 per share.
The debentures may be redeemed at 115% of face value plus interest any time after the first year assuming the company's stock trades above $3.00 for more than 20 consecutive trading days.
J.F. Mackie & Co. Ltd. was the placement agent.
Proceeds will be used for the ongoing development of interactive video games. The rest will be used for general corporate purposes.
Sausalito, Calif.-based Red Mile develops interactive entertainment software.
| Issuer: | Red Mile Entertainment, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $5,824,000
|
| Debentures: | 5,824
|
| Price: | $1,000
|
| Maturity: | Oct. 19, 2008
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion price: | $1.75 per share
|
| Call: | Redeemable at 115% of principal plus interest after first year if stock trades above $3.00 per share for 20 consecutive trading days
|
| Warrants: | No
|
| Placement agent: | J.F. Mackie & Co.
|
| Settlement date: | Oct. 19
|
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