Difference Capital Funding, Zolt-Gilburne trust commit $7.5 million
By Devika Patel
Knoxville, Tenn., March 21 - ePals Corp. said it raised $3 million in the first tranche of a $10 million non-brokered private placement of senior secured convertible debentures. The deal priced on March 13.
The convertible debentures initially mature on Oct. 31, 2014, which may be extended to Oct. 31, 2016. The securities accrue interest at 10% per year. The debenture may be converted into common shares at $0.40 per share, a 233.33% premium to the March 12 closing share price of $0.12.
After Oct. 31, 2014, the company may force conversion. It may redeem the debentures after Oct. 31, 2015.
Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust were the investors for the initial tranche and have committed to invest up to $7.5 million.
Settlement of the final tranche is expected April 29.
Proceeds will be used for general corporate purposes and working capital.
The education media company is based in Washington, D.C.
| Issuer: | ePals Corp.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $10 million
|
| Maturity: | Oct. 31, 2014 (initial, extendable to Oct. 31, 2016)
|
| Coupon: | 10%
|
| Conversion price: | $0.40
|
| Conversion premium: | 233.33%
|
| Call: | After Oct. 31, 2014
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investors: | Difference Capital Funding Inc. and Zolt-Gilburne 2012 Family Trust (for up to $7.5 million)
|
| Pricing date: | March 13
|
| Settlement date: | March 21 (for $3 million), April 29
|
| Stock symbol: | OTCBB: EPCPF
|
| Stock price: | $0.12 at close March 12
|
| Market capitalization: | $14.12 million
|
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