By Laura Lutz
Des Moines, Aug. 22 - SportsQuest, Inc., formerly known as Air Brook Airport Express, Inc., arranged a purchase agreement for $1.5 million of secured convertible notes.
AJW Partners, LLC; AJW Master Fund, Ltd.; and New Millennium Capital Partners II, LLC are the investors.
The company sold $500,000 of convertible notes on Aug. 16. The investors are required to purchase $500,000 more of the notes when a registration statement is filed and another $500,000 of the notes when the registration statement is declared effective.
The 8% notes mature on Aug. 16, 2010. Interest is payable quarterly.
The notes are convertible at a certain percent of the average of the lowest three trading prices during the 20 consecutive trading days ending one day before a conversion notice is issued. That percent will initially be 50%. It will rise to 60% if the registration statement is filed within 30 days of closing and to 70% if the statement is declared effective within 105 days.
The conversion price is subject to a maximum that was not announced.
The investors also received warrants for a total of 10 million shares, exercisable at $0.25 per share for seven years.
SportsQuest is a sports and entertainment marketing and management company based in Orlando, Fla.
| Issuer: | SportsQuest, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $1.5 million
|
| Maturity: | Aug. 16, 2010
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Initially, 50% of average of lowest three trading prices during 20 trading days before conversion notice
|
| Investors: | AJW Partners, LLC; AJW Master Fund, Ltd.; and New Millennium Capital Partners II, LLC
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 16 (for $500,000)
|
| Stock symbol: | OTCBB: ARBK
|
| Stock price: | $0.60 at close Aug. 22
|
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