By Sheri Kasprzak
New York, Aug. 23 - Headliners Entertainment Group, Inc. said it has issued a $7,953,698 secured convertible debenture to Cornell Capital Partners, LP to refinance two promissory notes.
The debenture bears interest at 12% annually, is convertible into common shares at $0.20 each and is payable on a monthly basis at $400,000 plus interest.
The debenture replaces two notes - one in the principal amount of $4.5 million issued on Jan. 25, 2005 and the other in the principal amount of $3 million issued on March 21, 2005. The $4.5 million note required six monthly principal payments at $750,000 each plus interest beginning Aug. 26, 2005. The $3 million note required 30 monthly principal payments at $100,000 each plus interest beginning May 23, 2005.
Headliners was in default under both of the notes.
Based in Montclair, N.J., Headliners owns and operates comedy clubs and dance clubs in New York and New Jersey.
| Issuer: | Headliners Entertainment Group, Inc.
|
| Issue: | Convertible debenture
|
| Amount: | $7,953,698
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $0.20
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | Aug. 19
|
| Stock price: | $0.14 at close Aug. 19
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
