NightCulture Inc (fka NGHTD)

[General_Sevier]

9.2 million of those warrants were originally issued at staggered levels of $5.00, $7.50 and $10.00 when the fair value was $5.00 per share. They were issued due to personal guarantees Sillerman made on a line of credit and on a draw on that line of credit. They originally vested immediately (issued 12/31/12 - 3/12/13) and the exchange required no vesting until 3 years had lapsed.

Sillerman had also been issued 1 million shares of common stock as compensation.

The 100,000 warrants at $0.01 were exchanged for 100,000 shares of common stock.

SFXE shareholders got a very reasonable deal.

And that discussion about SFXE has no relevance to warrants held by a third party financer that are deeply in the money and have to be converted in the next year.