By Sheri Kasprzak
New York, March 7 - Theater Xtreme Entertainment Group, Inc. closed a $2.7 million private placement of non-convertible debentures with warrants.
The 10% debentures were purchased by Kinzer Technology, LLC.
The debentures are due the earlier of March 6, 2010 or the date Theater Xtreme receives, after March 6, 2007, at least $6 million from a debt or equity financing.
Kinzer received warrants for 460,600 shares, exercisable at $1.10 each for five years.
Of the debentures, $2 million was funded at closing and the remaining $700,000 was issued by canceling a $700,000 non-convertible 10% debenture issued to Kinzer that was originally due Nov. 15, 2007.
The proceeds will be used for general corporate purposes.
Theater Xtreme operates a chain of electronics retail stores. The company is based in Newark, Del.
| Issuer: | Theater Xtreme Entertainment Group, Inc.
|
| Issue: | Non-convertible debentures
|
| Amount: | $2.7 million
|
| Maturity: | The earlier of March 6, 2010 or the date Theater Xtreme completes a financing of at least $6 million in debt or equity
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | For 460,600 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.10
|
| Investor: | Kinzer Technology, LLC
|
| Settlement date: | March 6
|
| Stock symbol: | OTCBB: TXEG
|
| Stock price: | $0.87 at close March 6
|
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