GEM Global Yield to buy common shares at 10% discount over two years
By Devika Patel
Knoxville, Tenn., Jan. 26 - Max Sound Corp. arranged a $50 million common stock purchase agreement with GEM Global Yield Fund Ltd. on Jan. 25, according to an 8-K filed Thursday with the Securities and Exchange Commission.
GEM has committed to purchase common shares over two years and will be paid a 2% fee.
The shares will be sold at a 10% discount.
The investor also received five-year warrants for 12 million shares, which are each exercisable at $1.00, a 42.86% premium to the Jan. 24 closing share price of $0.70.
Based in Houston, Max Sound is an audio technology company.
| Issuer: | Max Sound Corp.
|
| Issue: | Common stock purchase agreement
|
| Amount: | $50 million
|
| Tenor: | Two years
|
| Price: | Discounted 10%
|
| Warrants: | For 12 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Investor: | GEM Global Yield Fund Ltd.
|
| Fees: | 2%
|
| Settlement date: | Jan. 25
|
| Stock symbol: | OTCBB: MAXD
|
| Stock price: | $0.62 at close Jan. 25
|
| Market capitalization: | $160.5 million
|
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