M Line Holdings, Inc. (OTCBB:MLHC) announced a private placement of revolving loan facility for gross proceeds of $10,000,000 on March 31, 2013. The transaction will include participation from new investor TCA Global Credit Master Fund, LP, a fund managed by Trafalgar Capital Advisors LTD for the whole amount. The company will issue a revolving note to the investor; the note will bear an interest of 18% per annum, and has a maturity date of six months from the date of ... issuance. The transaction will be carried out in tranches. Upon the occurrence of any event of default or upon the mutual agreement, the investor may convert the principal of and accrued interest on the revolving note into common shares. The conversion price is 85% of the lowest daily volume weighted average price during the five business days immediately prior to conversion. Christopher A. Wilson from Wilson & Oskam, LLP will act as legal advisor to the company. David Kahan will act as legal advisor to the investor. Meyers Associates, LP acted as finder to the company. The company will pay asset monitoring fee of $1,500, which cannot be exceeded more than $2,500, transaction advisory fee of 3% at closing date, due diligence fee of $12,500, and document review and legal fee of $17,500. As on April 30, 2013, the company has signed an agreement with the investor and received $1,700,000 as initial draw down. The due date for this note is October 30, 2013. The company issued 200,000 series A convertible preferred stock upon the initial closing. The series A preferred stock is convertible into shares at the volume weighted average market price of its common stock. No dividend will be paid for series A convertible preferred stock.
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