Game developer may borrow another $1.28 million before Sept. 30
By Devika Patel
Knoxville, Tenn., March 15 - Zoo Entertainment, Inc. settled a $2.41 million loan agreement with MMB Holdings LLC on March 9, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company may borrow an additional $1.28 million before Sept. 30.
The 10% loan matures March 31, 2014.
MMB also received warrants for 10,952,775 common shares. The warrants are each exercisable at $0.40 until March 31, 2017. The strike price is a 57.9% discount to the March 8 closing share price of $0.95.
Proceeds will be used primarily to pay down $1.83 million of the company's obligations under a factoring agreement.
Los Angeles-based Zoo Entertainment is a developer, publisher and distributor of video game software for use on platforms including Nintendo's Wii, DS, GBA, Sony's PSP and PlayStation 2.
| Issuer: | Zoo Entertainment, Inc.
|
| Issue: | Loan
|
| Amount: | $2,414,158
|
| Maturity: | March 31, 2014
|
| Coupon: | 10%
|
| Warrants: | For 10,952,775 shares
|
| Warrant expiration: | March 31, 2017
|
| Warrant strike price: | $0.40
|
| Investor: | MMB Holdings LLC
|
| Settlement date: | March 9
|
| Stock symbol: | Nasdaq: ZOOG
|
| Stock price: | $0.95 at close July 13
|
| Market capitalization: | $9.69 million
|
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