Published on 4/18/2016 in the Prospect News PIPE Daily.
Michael James sells $121,000 of convertibles via $110,000 placements
Investors Vista, Tangiers buy promissory notes, stock through offering
By Devika Patel
Knoxville, Tenn., April 18 – Michael James Enterprises, Inc. sold a $60,500 convertible promissory note to Vista Capital Investments, LLC with an original issue discount accounting for $5,500 of fees on March 23, according to an 8-K filed Monday with the Securities and Exchange Commission. It sold a $60,500 10% convertible promissory note to Tangiers Investment Group, LLC with an original issue discount accounting for $5,500 of fees on March 24.
The Vista note matures in two years and carries a one-time interest payment of 10%. The Tangiers note is due in one year and may be prepaid. Tangiers will also receive 200,000 restricted common shares over the course of a year.
The notes will convert to common stock at a price equal to 55% of the lowest trading price of stock during the 20 trading days preceding conversion.
The marketing company is based in Short Hills, N.J.
| Issuer: | Michael James Enterprises, Inc.
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| Issue: | Convertible promissory note, 200,000 common shares over the course of a year
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| Amount: | $121,000
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| Price: | $110,000, or $11,000 original issue discount for fees
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| Conversion price: | 55% of the lowest trading price of stock during the 20 trading days preceding conversion
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| Warrants: | No
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| Stock symbol: | OTCBB: MJTV
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| Stock price: | $0.57 at close March 22
|
| Market capitalization: | $3.5 million
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| March 23 note
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| Amount: | $60,500
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| Maturity: | Two years
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| Price: | $55,000, or $5,500 original issue discount for fees
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| Coupon: | One-time 10% payment
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| Investor: | Vista Capital Investments, LLC
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| Settlement date: | March 23
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| March 24 note
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| Amount: | $60,500
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| Maturity: | One year
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| Price: | $55,000, or $5,500 original issue discount for fees
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| Coupon: | 10%
|
| Call: | Yes
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| Investor: | Tangiers Investment Group, LLC
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| Settlement date: | March 24
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