MaxLife reveals $2.5 million deal; Smart Move calls sale 'best option'; Harvey repays loan with $6 million

By LLuvia Mares

New York, Aug. 29 - MaxLife Fund Corp. announced Wednesday a $2.5 million financing agreement.

The company will receive $500,000 from Brookdale Consulting Ltd. and will have the option to draw on the $2 million balance within the next six months.

"We are extremely pleased to reach this favorable agreement with Brookdale Consulting," said Bennett Kurtz, company chief executive officer, in a press release. "We believe this financing will enable us to reach our goal of aggregating a portfolio of life settlement policies with exceptional value for our shareholders."

The terms of the financing will be based on restricted shares and closing prices of each advance will be at a premium to the market.

The company will use to the proceeds to purchase life settlement policies.

New Jersey-based MaxLife Fund is a fund operating in the health and life settlement sector.

Smart Move calls placement 'best option'

Smart Move, Inc. completed a private placement of note units for about $1.2 million earlier in the week.

Existing holders of the company's convertible notes bought 48 note units, according to a company news release.

"The company's existing investors wanted to invest additional funds into Smart Move," a company insider told Prospect News. "The company was able to use this instrument [private placement] to raise funds on an efficient and cost effective basis."

Details of the placement were not announced.

The company saw its stock drop 7.33% Wednesday, ending the day at $1.39, an $0.11 loss from Tuesday's close of $1.50.

The company insider said that beside the market's recent conditions, the lack of trading activity will not directly affect their financing.

"We can't predict what the stock is going to do," he said. "We just have to believe that the company's performance will continue to improve no matter whether the stock drops or rises."

Denver-based Smart Move provides a moving service for individual and commercial customers.

Harvey to repay loan with $6 million

Harvey Electronics, Inc. said Wednesday it will use the proceeds from the $6 million private placement of secured convertible debentures and warrants to refinance its bank debt and for general working capital purposes.

YA Global Investments, LP is the investor.

A first tranche of the deal closed on Aug. 22. It includes $4 million of debentures and a warrant for 1,262,274 shares.

YA Global has agreed to buy another $1.5 million of debentures on the later of the date that the company gets shareholder approval for the shares underlying the debentures and warrants and the date that that a registration statement for the shares is filed.

YA Global will buy the final $500,000 of debentures on the date that the registration statement is declared effective.

The debentures bear interest at 12% per year and mature on Aug. 22, 2010. They are convertible into common stock at $5.60 per share.

The warrant is exercisable at $0.01 per share for five years.

A company insider told Prospect News that the company's main reason for using this particular financing structure was because of its flexibility.

"It gives us a lot more flexibility than compared to the conventional banking," he said. "Now that we have raised this money we are going to use it to regain profit stability."

Carlton Capital was the placement agent.

Located in Lyndhurst, N.J., Harvey operates a chain of retail electronics outlet.

Access stock tumbles

Only a day after Access Integrated Technologies, Inc. announced a $55 million private placement settlement of 10% senior unsecured notes with an equity kicker, the stock saw a 3.65% drop.

The stock price closed at $6.08 Wednesday, $0.23 cents less than the Aug. 27 closing of $6.56.

The three-year notes may be extended for up to six months at the company's discretion.

The company also issued 715,000 shares of class A common stock paid as an equity kicker for the first year.

Starting after Dec. 31, 2008 the company will issue common stock as an equity kicker at a rate between 2.4 and 4.0 shares per $1,000 principal value of notes paid quarterly.

Proceeds will be used to redeem the existing $22 million of one-year senior notes issued in October 2006, for expansion of the company's digital cinema rollout plan, to retire the $6 million bank loan at the company's advertising and creative services division, for working capital and other general corporate purposes.

Morristown, N.J.-based Access Integrated Technologies provides networked digital cinema systems to theater operators.

PetroSouth settles $1.5 million placement

PetroSouth Energy Corp. announced Wednesday a $1.5 million private placement of units.

The units were priced at $1.00 each and consist of one common share and one share purchase warrant.

The warrants are exercisable for one common share at $1.50 until Aug. 27, 2010.

Houston, Tex.-based PetroSouth Energy provides new energy solutions through strategic exploration and development.

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