Argh, I don't own but took a look as to who was behind the financing - Cornell Capital, what a surprise. These guys do this all the time, I got burnt on MLXO a year ago because of them. That company did manage to launch a lawsuite against them, but I guess it didn't do much.
Hope it bounces for you guys.
James
On July 10, 2006, Savi Media Group, Inc. (the "Company") entered into a Securities Purchase Agreement (the "Purchase Agreement") with Cornell Capital Partners L.P. ("Cornell") providing for the sale by the Company to Cornell of its 10% secured convertible debentures in the aggregate principal amount of $2,970,000 (the "Debentures") of which $1,670,000 was advanced immediately. The second installment of $800,000 will be advanced two business days prior to the filing by the Company with the Securities and Exchange Commission (the "Commission") of the Registration Statement (as defined below). The last installment of $500,000 will be advanced two business days prior to the Registration Statement being declared effective by the Commission.
In connection with the Purchase Agreement, we agreed to issue Cornell warrants to purchase an aggregate 2,900,000,000 shares of Common Stock of the Company (the "Common Stock"), exercisable for a period of five years as follows (collectively, the "Warrants"):
Number of Warrants Exercise Price
1,000,000,000 $ 0.003
1,000,000,000 $ 0.006
300,000,000 $ 0.01
200,000,000 $ 0.015
150,000,000 $ 0.02
100,000,000 $ 0.03
60,000,000 $ 0.05
40,000,000 $ 0.075
30,000,000 $ 0.10
20,000,000 $ 0.15
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