Deal summary
Futuremedia, e-learning content and services provider, issued a convertible note worth $4 million to real estate investment firm M.A.G. LLC
- The investment was made via a Convertible Debenture that is convertible (subject to certain terms and conditions) into ADSs of the Company.
- The Convertible Debenture bore interest at an annual rate equal to the greater of 8.5% or Wall Street Journal Prime Rate plus 3%, but in no event greater than 10%.
- The agreement with M.A.G also provided for an additional $2,000,000 of funding that was made available at our request provided that we achieve certain performance benchmarks. Net proceeds to us from the M.A.G. investment were approximately $3,800,000.
- Warrants to the investors were issues covering an aggregate of 6.2 million ADSs with an exercise price of $0.61 per share.
- Warrants to purchase 411,692 ADSs to our financial adviser on the investment were issued, on substantially the same terms as the warrants issued to the investors.
- In accordance with the Convertible Debentures issued to M.A.G. On July 21, 2005, Futuremedia made monthly principal payments for October 2005 and November 2005 of $333 thousand each by issuing ADSs in place of cash payments. 700,680 ADSs in October 2005 and 856,986 ADSs in November, 2005 were issued, respectively
About Futuremedia
Futuremedia is a leading provider of next-generation, value-driven e-learning content and services to public and private sector organizations. Backed by two decades of experience, the Company’s content and services offerings include learning consultancy, Learning Management Systems, custom made learning programs and an extensive library of published courseware titles. The Company is also recognized as a pioneer and leader in the development and delivery of a range of fully managed, outsourced employee benefit programs for large organizations, including products and services falling under the UK’s Home Computing Initiative (HCI), childcare voucher system and tax-free bicycle programs.
About M.A.G. Capital, LLC
MAG Capital Partners is a private commercial real estate investment firm offering private investments in single-tenant, net-leased industrial, and value-added developments. The firm's primary directive is to bring vision, energy, and capital together for the benefit of its investment partners and the communities.
MAG Capital Partners was established in 2012 and is headquartered in Fort Worth, Texas.
