MSGI Retires Series H Convertible Preferred Stock and Related Warrants and Put Options
Monday August 25, 8:00 am ET
NEW YORK, Aug. 25 /PRNewswire-FirstCall/ -- MSGI Security Solutions Inc. (OTC Bulletin Board: MSGI - News) "MSGI" today reported that it has entered into an agreement with an existing institutional investor, Enable Growth Partners LP, holder of all $5 million of MSGI's Series H Convertible Preferred Stock, to retire all the outstanding shares of such preferred stock along with the 5 million shares of underlying common stock, 5 million warrants and various put options. Enable Growth Partners recently acquired the balance of the preferred stock, warrants and put options pursuant to a private transaction with third party holders.
Pursuant to the agreement with Enable Growth Partners, MSGI exchanged $4 million of the preferred stock and all related warrants for an 8% Secured Convertible Debenture, due May 21, 2010, with a principal amount of $4 million, otherwise in the form of the secured convertible debenture issued by MSGI on May 21, 2007. The debenture is convertible into common stock of MSGI at a fixed conversion rate equal to $0.50 per share. $1 million of the preferred stock was redeemed in cash by MSGI out of the proceeds of the blocked account maintained in connection with the issuance of the preferred stock. The balance of the funds held in such blocked account, $800,000.00, has been released to MSGI for working capital purposes.
As additional consideration for Enable Growth Partners agreement to effect the exchange transaction, the Company transferred its ownership of a common stock purchase warrant in Current Technology Corporation (OTC Bulletin Board: CRTCF - News) to purchase up to 20 million shares of common stock of Current Technology to Enable Growth Partners.
MSGI still owns 20 million common shares of Current Technology Corporation and has notified Current Technology executive management of its intention to increase that equity position in the future.
About MSGI Security Solutions, Inc.
MSGI Security Solutions, Inc. is a leading international provider of proprietary security solutions to commercial and government organizations. MSGI is developing a combination of innovative emerging businesses that leverage information and technology with a focus on encryption technologies for actionable surveillance and intelligence monitoring. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement in the United States, Europe, the Middle East and Asia. More information on MSGI is available on the company's website at www.msgisecurity.com |
