Media Central Corporation Inc. (CSE:FLYY) has raised gross proceeds of $1.626 million to complete its acquisition of the Vancouver alternative weekly The Georgia Straight via a private placement offering, which is still subject to regulatory approval.
The financing consists of 10% senior secured convertible debt units at an issue price of $1,000 per unit. The debt will mature 24 months from the financing’s closing date and will bear interest at a rate of 10% per year, which will be paid every quarter.
The debt units can be converted into 14,285 shares and 7,142 warrants. Each warrant allows for the acquiring of one share at an exercise price of $0.20 at any time up to 24 months from the offering’s closing date. The conversion price for the shares is equal to $0.07 per share and the debt is subject to prepayment and forced conversion terms under select circumstances.
The debt is subject to a four-month hold period according to Canadian law.