TORONTO, Ontario, August 6, 2015 – Mood Media Corporation (“Mood Media”, “Mood” or the “Company”) (TSX:MM), is pleased to announce today the closing of its previously announced financing transaction of US$50 million aggregate principal amount of 10% Senior Unsecured Notes due September 18, 2023 (the “MMG Notes”) of Mood Media Group SA (“MMG”), its indirect wholly owned Luxembourg subsidiary that holds Mood Media’s international operations, by way of private placement (the “Private Placement”).
Purchasers of MMG Notes in the Private Placement also received Mood Media common share purchase warrants (the “Warrants”). The Warrants have an exercise price of Cdn$0.80 per Mood Media common share and a term of 8 years. An aggregate of 21.7 million Warrants have been issued as part of this Private Placement.
The net proceeds from the Private Placement will be used to repay Mood Media’s Convertible Debentures at maturity. To the extent the Private Placement proceeds applied are not sufficient to fully pay the amounts required in connection with the repayment of the Convertible Debentures, Mood Media will satisfy such deficiency in cash and/or, subject to the approval of the TSX, Mood Media common shares in accordance with the applicable indentures governing the Convertible Debentures. Mood Media will notify holders of the Convertible Debentures of the specifics of the repayment at the required time under the terms of the applicable indentures.
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the MMG Notes or the Mood Media Warrants in any jurisdiction, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration and qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority. The MMG Notes, the Warrants and Mood common shares have not been registered under the United States Securities Act of 1933 (the “1933 Act”) and may not be offered or sold in the United States or to United States person except pursuant to an effective registration statement filed pursuant to the 1933 Act or pursuant to an exemption or exclusion from the registration requirements of the 1933 Act.