By Sheri Kasprzak
Atlanta, Dec. 2 - Digital Lifestyles Group Inc. said Thursday it has wrapped up a financing comprised of a convertible revolving note and a convertible term note with Laurus Master Fund Ltd.
The outstanding balance of the $4.75 million revolving note and the principal of the $2.75 million term note are convertible into common shares at $0.39 each.
Laurus may convert either of the notes into shares on any given day up to 30% of the trading volume of the company's stock for 22 consecutive trading days before conversion, minus the number of shares already issued. Laurus may not deliver more than two conversion notices in a 22-day trading period.
Each of the notes, dated Nov. 29, 2004, matures Nov. 29, 2007 and bears interest at Prime plus 200 basis points.
Laurus also received warrants in the deal for up to 3,846,154 shares at $0.44 each.
Based in Austin, Texas, Digital designs, manufactures and markets digital software, personal computers, accessories and entertainment and communications products.
| Issuer: | Digital Lifestyles Group Inc.
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| Issue: | Convertible revolving note and convertible term note
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| Amount: | $4.75 million (revolving note); $2.75 million (term note)
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| Maturity: | Nov. 29, 2007
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| Coupon: | Prime plus 200 basis points
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| Conversion price: | $0.39
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| Warrants: | For 3,846,154 shares
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| Warrant strike price: | $0.44
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| Investors: | Laurus Master Fund Ltd.
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| Announcement date: | Dec. 2
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| Settlement date: | Nov. 29
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| Stock price: | $0.38 at close Nov. 29
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