Cinema Internet arranges $4.5-million (U.S.) financing
2008-02-14 13:55 ET - News Release
Mr. Bill Massey reports
CINEMAWORKS ANNOUNCES US $4.5 MILLION CONVERTIBLE DEBENTURE FINANCING
Cinema Internet Networks Inc. has arranged a $4.5-million (U.S.) convertible debenture financing. The convertible debenture has a five-year term and is convertible into shares of the company after the first year at the weighted average price of the previous 90 trading days prior to the conversion date, with the weighted average price defined as the arithmetic average of each 30-day period, weighted with the other two 30-day periods of the quarter. There is a minimum conversion price of 25 cents per share. The convertible debenture includes a detachable warrant exercisable into two million shares. The warrant may be exercised any time within one year at a price of 25 cents per share for a total exercise price of $500,000. The finances raised are being used to expand the existing business of CinemaWorks.
Bill Massey, president and chief executive officer, states, "This transaction affords CinemaWorks the opportunity to develop several outstanding business opportunities, which are some of the most promising in the company's 23-year history."
The financing remains subject to TSX Venture Exchange acceptance. Finders' fees will be payable in accordance with TSX Venture Exchange rules.