By Sheri Kasprzak
New York, June 6 - Branded Media Corp. settled a $7 million private placement of units comprised of debentures and warrants.
The company issued 112 units at $62,500 each.
Of the proceeds, $3,375,000 was issued for cash and the remaining $3,625,000 was issued following conversions from existing debenture and preferred holders.
Each unit is comprised of $62,500 in principal of 8% secured convertible debentures and warrants for 250,000 shares.
The debentures are initially convertible into 250,000 common shares at $0.25 each and are due Dec. 1, 2006.
The warrants are exercisable at $0.50 each through June 1, 2011.
If Branded completes another private placement before the maturity of the debentures, the holders may convert up to 110% of the principal of these debentures under the new placement terms.
The debentures may be prepaid at any time without penalty.
Westminster Securities Corp. was the placement agent.
The proceeds will be used for the development of the company's brands and for the expansion of its subsidiary, Executive Media Network.
New York-based Branded is a media company that manages and extends brands using multimedia platforms.
| Issuer: | Branded Media Corp.
|
| Issue: | Units of $62,500 in convertible debentures and 250,000 warrants
|
| Amount: | $7 million
|
| Units: | 112
|
| Price: | $62,500
|
| Maturity: | Dec. 1, 2006
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.25
|
| Conversion ratio: | Into 250,000 common shares
|
| Warrants: | For 250,000 shares per unit
|
| Warrant expiration: | June 1, 2011
|
| Warrant strike price: | $0.50
|
| Placement agent: | Westminster Securities Corp.
|
| Settlement date: | June 6
|
| Stock symbol: | Pink Sheets: BMCP
|
| Stock price: | $0.50 at close June 5
|
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