By Sheri Kasprzak
Atlanta, June 8 - TriMedia Entertainment Group, Inc. said it has closed a private placement for $1.59 million.
The company sold a secured convertible term note to IL Resources, LLC.
The note bears interest at 12% annually, matures on May 30, 2006 and is convertible into a total of 3.18 million common shares at $0.50 each.
IL also received warrants for 2 million shares, exercisable at $0.50 each through May 5, 2010.
In connection with the offering, TriMedia agreed, as long as 25% of the principal amount of the note is outstanding, to not pay any dividends, not issue any mandatorily redeemable preferred stock before May 30, 2007, not redeem any preferred stock or other equity interests, not liquidate, dissolve or make any material reorganizations or create or acquire any subsidiaries.
Based in Philadelphia, TriMedia distributes music and films.
| Issuer: | TriMedia Entertainment Group, Inc.
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| Issue: | Secured convertible term note
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| Amount: | $1.59 million
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| Maturity: | May 30, 2006
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| Coupon: | 12%
|
| Price: | Par
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| Yield: | 12%
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| Conversion price: | $0.50
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| Conversion ratio: | Into 3.18 million shares
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| Warrants: | For 2 million shares
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| Warrant expiration: | May 5, 2010
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| Warrant strike price: | $0.50
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| Investor: | IL Resources, LLC
|
| Settlement date: | May 5
|
| Stock price: | $0.20 at close May 5
|
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