Warrant coverage included; five-year warrants are exercisable at $0.01
By Devika Patel
Knoxville, Tenn., March 18 – Omega Commercial Finance Corp. settled a $500,000 secured loan with Mark Feanny on March 11, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on March 4.
The 8% loan matures March 4, 2017. The maturity can be extended by 90 days at the company’s option, during which period the interest rate will increase to 15%. It is secured by the pledge of 1 billion series CC preferred shares.
Interest is payable in monthly installments of $3,333.33 in cash or, at the option of the lender, the issuance of 1,334 shares of series Z preferred stock.
The loan may be prepaid at any time without premium or penalty.
Feanny was appointed to the board of directors and also received five-year warrants for 20 million shares. Each warrant is exercisable at $0.01.
Proceeds will be used for legal, accounting and other working capital expenses.
The commercial real estate lending and advisory firm is based in Columbus, Ohio.
| Issuer: | Omega Commercial Finance Corp.
|
| Issue: | Secured loan
|
| Amount: | $500,000
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| Maturity: | March 4, 2017
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| Coupon: | 8%, payable in cash or in series Z preferred stock
|
| Call: | At any time
|
| Warrants: | For 20 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.01
|
| Investor: | Mark Feanny
|
| Pricing date: | March 4
|
| Settlement date: | March 11
|
| Stock symbol: | OTCBB: OCFN
|
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