Each preferred share is convertible into one common share
By Angela McDaniels
Tacoma, Wash., May 3 – Frequency Networks, Inc. sold $3 million of series A convertible preferred stock to YOU On Demand Holdings, Inc. in a private placement.
The company settled $2 million of the placement on April 13 and an additional $1 million on April 28, according to 8-K filings made with the Securities and Exchange Commission by YOU On Demand.
Frequency Networks sold 8,566,271 preferreds at $0.35 apiece. They have a liquidation preference of $0.42467 each.
Each preferred is convertible into one common share and is entitled to non-cumulative dividends at the rate of $0.02548 per year, which is 6% of the liquidation preference.
Frequency Networks is a cloud-based internet video service based in Los Angeles. Based in New York, YOU On Demand is a national pay-per-view and video-on-demand platform in China.
| Issuer: | Frequency Networks, Inc.
|
| Issue: | Series A convertible preferred stock
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| Amount: | $3 million
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| Preferreds: | 8,566,271
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| Price: | $0.35
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| Liquidation preference: | $0.42467
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| Dividends: | $0.02548 per year, or 6%
|
| Conversion ratio: | Into one common share each
|
| Warrants: | No
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| Investor: | YOU On Demand Holdings, Inc.
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| Settlement date: | April 13 for $2 million and April 28 for $1 million
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