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Tuesday, 25 September 2012
Digital Shelf Space secures $500,000 loan, to launch $500,000 financing
Home entertainment media company Digital Shelf SpaceCorp. (CVE:DSS)(OTCQX:DTSRF) said today it has secured a C$500,000 revolving loan facility, and has also announced a C$500,000 private placement financing - as it gets ready for its peak selling season.
The loan facility from Four Winds Financial Investments comes at a rate of 12 per cent per year, with maturity at the first anniversary of the closing date.
The loan is secured by the assets of the company.
Digital Shelf Space is responsible for the GSP RUSHFIT home workout DVD series featuring Georges St-Pierre, and the DVD golf instructional series that will be marketed under the TOURAcademy brand name.
The private placement financing announced Friday will consist of up to 10 million units at a price of 5 cents each. Each unit will be made up of one common share and one share purchase warrant.
Every warrant will allow the holder to buy another share of the company at a price of 10 cents with one year and a half following the closing date.
The company said it could raise a maximum of C$750,000 from the financing through over-allotment options.
"We are pleased to have secured the revolving loan facility and look forward to closing the private placement in the near term, as together we minimize dilution for our shareholders while at the same time give our organization the capability to launch our new TOURAcademy Home Edition in Q4 (peak season for golf media products) with more of a bang," said president and CEO of Digital Shelf Space, Jeffery Sharpe.
"Not only are we excited about our hard launch of the TOURAcademy Home Edition in October, but also the return of Georges St-Pierre to the cage and the spotlight, after an 18 month lay off due to injury, as we head into the peak season for the sales of GSP RUSHFIT."
The company anticipates his return to the mixed martial arts work to have a positive impact on its overall sell through this year.
Digital Shelf said Friday it plans to use the news funds from the loan and the offering for marketing and advertising, working capital and other corporate purposes.