By Sheri Kasprzak
New York, May 22 - MSGI Security Solutions, Inc. is getting ready to close a $5 million private placement of convertible notes.
A group of new and existing institutional investors agreed to buy the 8% notes, which are due in three years.
The notes are convertible into common shares at $1.40 each, a price equal to 100% of the average of the preceding 10-day volume weighted average price.
The investors will also receive warrants equal to half of the shares issuable upon conversion. The warrants are exercisable at $2.00 each.
H.C. Wainwright & Co. was the placement agent.
Proceeds will be used for the closing of the company's Apro Media Corp. contract and for the offsetting of infrastructure expansion costs related to that contract.
Based in New York, MSGI is a security products and services company.
| Issuer: | MSGI Security Solutions, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $5 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $1.40
|
| Warrants: | For half of the shares issuable upon conversion
|
| Warrant strike price: | $2.00
|
| Placement agent: | H.C. Wainwright & Co.
|
| Announcement date: | May 22
|
| Stock symbol: | OTCBB: MSGI
|
| Stock price: | $2.00 at close May 21
|
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