On December 1, 2016, pursuant to a Securities Purchase Agreement (“SPA”) entered into by Helios and Matheson Analytics Inc. (the “Company”), an institutional investor (the “Investor”) and Palladium Capital Advisors LLC (“Palladium”), the Company agreed to sell and issue two Senior Secured Convertible Notes to the Investor in the aggregate principal amount of $6,720,000 (each, a “Note” and collectively, the “Notes”) for consideration consisting of (i) a cash payment by the Investor in the amount of $1,100,000 and (ii) a secured promissory note payable by the Investor to the Company (the “Investor Note”) in the principal amount of $4,900,000 (the “Purchase Price Balance”) (collectively, the “Note Financing”). The Note in the aggregate original principal amount of $1,820,000 is referred to as the “Initial Note”. The Note in the aggregate original principal amount of $4,900,000 is referred to as the “Additional Note”. The Note Financing was made pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) promulgated thereunder. The Company will use all the proceeds from the sale of the Notes for general corporate purposes.
For more information, see complete 8K filing here.