Published on 11/5/2008 in the Prospect News PIPE Daily.
New Issue: Salon sells another $1 million in convertible promissory notes, bringing total to $2.5 million
By Devika Patel
Knoxville, Tenn., Nov. 5 - Salon Media Group, Inc. sold another $1 million of convertible promissory notes on Oct. 31 as part of a private placement of secured convertible promissory notes, which priced on April 4, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
This new notes bring the deal size up to $2.5 million. Dr. John Warnock and the Hambrecht 1980 Revocable Trust bought the notes, each investing $500,000.
The notes have a 7.5% coupon and will mature Oct. 31, 2012. Earlier notes mature on March 31, 2012. Interest on the notes is payable semi-annually in cash or in kind. They are convertible into common shares at any time with an initial conversion price of $0.6746. Earlier notes were convertible at $1.68.
John Warnock invested $500,000 earlier. William Hambrecht and E & M RP Trust each bought $500,000 as well.
Proceeds will be used for working capital and other general corporate purposes.
San Francisco, Calif.-based Salon Media is an Internet media company that produces a content web site with 10 subject-specific sections, one of which includes two online communities.
| Issuer: | Salon Media Group, Inc.
|
| Issue: | Convertible promissory notes, warrants
|
| Amount: | $2.5 million
|
| Maturity: | March 31, 2012 (for $1.5 million), Oct. 31, 2012 (for $1 million)
|
| Coupon: | 7.5%, payable semi-annually in cash or in kind
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion price: | $1.68 (for $1.5 million), $0.6746 (for $1 million)
|
| Warrants: | No
|
| Investors: | John Warnock (for $1 million) William Hambrecht (for $500,000) E & M RP Trust (for $500,000), the Hambrecht 1980 Revocable Trust (for $500,000)
|
| Pricing date: | April 4
|
| Settlement date: | April 4 (for $1 million), May 15 (for $500,000), Oct. 31 (for $1 million)
|
| Stock symbol: | OTCBB: SLNM
|
| Stock pr ice: | $1.68 at close April 4
|
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