By Devika Patel
Knoxville, Tenn., April 23 - Mega Media Group, Inc. completed a $1.5 million private placement of a 7% convertible debenture with Golden Gate Investors, Inc., according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The debenture was issued for $100,000 in cash and a $1.4 million promissory note that matures on April 8, 2012. The promissory note contains a prepayment provision that requires Golden Gate to make prepayments of interest and principal of $250,000 monthly, upon satisfaction of certain conditions. It is also convertible into common stock and may be prepaid at 125%.
The debenture matures on April 18, 2012. Interest is payable in cash or, at Golden Gate's option, in common shares. It may not be prepaid without Golden Gate's written consent.
It is convertible into common stock at a conversion price equal to the lesser of $0.50 per share or 75% of the average of the three lowest volume-weighted average prices during the 20 trading days prior to conversion.
Mega Media, based in New York, is a multimedia entertainment holding company.
| Issuer: | Mega Media Group, Inc.
|
| Issue: | Convertible debenture
|
| Amount: | $1.5 million ($100,000 in cash, $1.4 million promissory note)
|
| Maturity: | April 18, 2012
|
| Coupon: | 7%, payable in cash or shares
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | The lesser of $0.50 or 75% of the average of the three lowest volume-weighted average prices during the 20 trading days prior to conversion
|
| Warrants: | No
|
| Investor: | Golden Gate Investors, Inc.
|
| Settlement date: | April 23
|
| Stock symbol: | OTCBB: MMDA
|
| Stock price: | $0.13 at close April 22
|
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