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IRVINE, Calif., Aug. 29, 2013 (GLOBE NEWSWIRE) -- AllDigital Holdings, Inc. (OTCBB:ADGL) offered and sold an aggregate of $1.325 million in Convertible Promissory Notes ("Notes") to an aggregate of 6 individual and institutional investors. The Notes closed on August 26, 2013. An additional $155,000 in Notes is expected to close over the next week.
The Notes bear interest at a rate of 9% per annum from and after December 1, 2013, and are due on August 1, 2014. Absent an event of default, the Notes will automatically convert shares of common stock of AllDigital or Broadcast International Inc. (OTCBB:BCST) ("Broadcast") prior to the due date for the Notes.
"This financing provides AllDigital with immediate capital to scale its sales and marketing efforts, technology development, capital equipment, and general working capital," said Paul Summers, AllDigital's CEO. "As part of our efforts to scale AllDigital into a global brand, we also are pleased to announce the recent hires of Greg Siefkin as our VP of Sales and Kristin Davis as our Director of Marketing. Mr. Siefkin has over 16 years of strategic sales and major account management experience holding VP roles at digital media firms such as Ascent Media and Technicolor. Ms. Davis brings over 10 years of marketing experience with an extensive background in driving both product and corporate marketing programs in the cloud technology space. We are excited about these additions to our team here in Irvine."
If the proposed merger between AllDigital and Broadcast (the "Merger") closes prior to November 30, 2013, amounts owed under the Notes will automatically convert into shares of Broadcast common stock at a conversion price equal to the lesser of (a) the lowest price per share at which Broadcast common stock is sold in an offering of capital stock for cash by Broadcast that closes, or in which firm commitments are received, on or about the closing date of the Merger, and (b) the quotient of (i) $15,000,000, divided by (ii) the number of shares of Broadcast common stock issued and outstanding immediately following the Merger closing (assuming the exercise or conversion of all options or warrants to purchase, and all instruments convertible into, Broadcast common stock, other than the Notes and related agreements). Broadcast is a party to the Notes in order to facilitate these conversion provisions.