Consorteum Holdings, Inc. announced today it has entered into an agreement with a single investor for financing in the amount of $300,000. In exchange for the capital, the investor received a secured convertible promissory note for $300,000 bearing interest at 12% per annum.
Interest only is payable quarterly in arrears, with all remaining interest and principal due and payable on November 2, 2011. At the discretion of the investor, all or part of the principal may be repaid by the company’s common stock at a 35% discount from the average of the bid and ask price for the ten days preceding the date selected for conversion. In the event that the shares trade at a price above $0.10 for a period of twenty consecutive trading days, the company may require the lender to convert the principal amount of the loan into shares of common stock at a conversion price equal to 35% below the 20 day average bid and ask prices. Consorteum also issued the lender 7,500,000 restricted shares as part of the transaction.
Craig Fielding, CEO of Consorteum Holdings, Inc., commented, “I consider this to be an important first step to allow Consorteum to move forward with its current initiatives. We are currently expanding the First Nations pilot initiative and this first infusion allows for continued rollout across Canada. We are now well positioned for this initiative’s continued deployment over the next 12 months and confident we will be on time with this and additional key initiatives planned for the coming months.”
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