Proceeds used to make bridge loan to Boldface Licensing + Branding
By Devika Patel
Knoxville, Tenn., June 4 - Boldface Group, Inc. raised $425,000 in the final tranche of a $1.93 million private placement of 10% secured convertible promissory notes on May 31, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised about $1.5 million on May 16 and May 17.
Each note is due in six months. The notes convert to units of one common share and two warrants at $0.25 per unit.
Each of the first warrants is exercisable into stock at $1.00 per common share for five years. The second warrants are exercisable for five years into a number of shares equal to the number of units into which the notes are convertible. Half of the second warrants are exercisable at $0.25 and half at $0.50.
The proceeds were used to make a secured bridge loan to Boldface Licensing + Branding in connection with a possible business combination of the two companies.
The development-stage company, formerly doing business as Max Cash Media, Inc., is based in Great Neck, N.Y.
| Issuer: | Boldface Group, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1,925,000 (approximate)
|
| Maturity: | Six months
|
| Coupon: | 10%
|
| Conversion price: | $0.25
|
| Warrants: | Two warrants per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00, $0.25, $0.50
|
| Settlement date: | May 16, May 17 (for about $1.5 million), May 31 (for $425,000)
|
| Stock symbol: | OTCBB: BLBK
|
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