By Sheri Kasprzak
Atlanta, April 14 - Americana Publishing Inc. said it received a $10 million equity line from Cornell Capital Partners LP.
Under the terms of the standby equity distribution agreement, Americana will sell shares to Cornell at 95% of the lowest volume weighted average price for five trading days immediately after a draw down notice.
Cornell will retain 10% of each advance and will also receive a commitment fee equal to 1,478,940 shares and a warrant to buy 13,521,060 shares at no cost for three years.
The advances available on the equity line are limited to $250,000 a week.
Newbridge Securities Corp. was the placement agent in the offering.
In other news, the company sold an $820,000 promissory note to Montgomery Equity Partners Ltd. on April 1. The note bears interest at 24% annually.
The investor also received a warrant for 375,000 shares at $0.001 each for three years.
Yorkville Advisors Management LLC was the placement agent for the note.
Based in Albuquerque, N.M., Americana publishes and sells audio, print and electronic books.
| Issuer: | Americana Publishing Inc.
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| Issue: | Standby equity distribution agreement
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| Amount: | $10 million
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| Price: | 95% of the lowest weighted average price five trading days after notice
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| Warrants: | For 13,521,060 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.00
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| Investors: | Cornell Capital Partners LP
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| Placement agent: | Newbridge Securities Corp.
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| Settlement date: | April 1
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| Stock price: | $0.02 at close April 1
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