ST. LOUIS, July 2, 2014 /PRNewswire/ -- Internet radio and digital broadcast platform provider StationDigital Corporation (OTCBB: ALDV) today announced it has issued a Convertible Senior Secured Note in the principal amount of Five Hundred Thousand Dollars. The company recently moved its headquarters to a prominent St. Louis location in order to attract top software developer talent and to improve the company's branding efforts.
The Note accrues interest at the rate of twelve percent, is due nine months after execution and is convertible into like securities of the Company's next offering at the greater of a thirty percent (30%) discount to such offering price or a minimum discount floor of $0.50 per share.
In conjunction with the issuance of the Note, the Company also issued warrants to the Note Holder to purchase Five Hundred Thousand shares of the Company's common stock at an exercise price at the greater of a thirty percent (30%) discount to such offering price or a minimum discount floor of $0.50 per share; warrants shall expire five years after the date of issuance. The Company intends to close up to an additional One Million Five Hundred Thousand Dollars via this deal structure for an aggregate Two Million Dollars.
"We are very pleased to issue this secured note which will allow us to continue down our path of growth and music streaming innovation," said Lou Rossi, Chairman of the Board and CEO of StationDigital. "With our recent headquarters movement and subsequent desire to add more top-tier staff, we required additional access to capital. We're looking to raise a total of $2 million through this deal structure which will provide us with the necessary funds to reach our short and long-term goals."
StationDigital provides quality streaming content through its library of more than 20 million songs. It features a personalized listening experience that allows users to build custom music playlists based upon themes and interests. It also offers the SD Rewards program which helps users earn virtual currency for listening to music and sharing StationDigital with friends on social media.
About StationDigital Corporation
StationDigital is a multimedia digital broadcast company that offers free music streaming of over 23 million songs. StationDigital features both genre-based and artist-based music discovery stations to suit an endless variety of musical tastes, and a personal recommendation service to its more than three million users – all available both online and through its iOS and Android mobile apps. StationDigital's users can customize their listening experience by selecting playlists and stations based on themes, interests and location, as well as favorite artists, songs or genre, and by providing feedback on the music they hear. StationDigital also offers the industry's first Listener Rewards program in which users earn points for listening, sharing and inviting friends on social media to enjoy StationDigital. Listener Rewards points are redeemable in the StationDigital online store to purchase music, merchandise and additional discounts. StationDigital is headquartered in St. Louis. For more information, visit www.stationdigital.com or download the StationDigital app for Android or iOS mobile devices.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE StationDigital Corporation