CardioGenics Holdings Inc. (CGNH)

[LGL8054]

Yorkville to Provide $5M Equity Line in Reverse Merger
Posted March 16, 2009 1:55PM PST
CardioGenics Inc., a Canadian medical product company, agreed to a reverse merger last week that will include a $5 million equity line from Yorkville Advisors.

CardioGenics will receive an 85% stake in the Florida shell company JAG Media Holdings, according to the March 12 letter of intent.

The merger is expected to close in late April after due diligence is completed, at least $1.5 million in financing has been secured, and other requirements have been met.

The company also agreed to a $5 million equity line with Jersey City, N.J.-based Yorkville. The equity line shares are to be issued over the course of 36 months, after they are registered.

JAG has been a financial and investment information company since 1989, but it has agreed on several occasions to reverse mergers with unrelated businesses.

In October, JAG signed a non-binding letter of intent to reverse merge with Colorado-based natural gas company BlueCreek Energy, but BlueCreek called off the discussions on Dec. 29. BlueCreek signed a letter of intent for an $80 million merger with the SPAC Dekania Corp. on the same day.

The merger ultimately unraveled last month after shareholders of Dekania refused to allow the SPAC more time to finalize the deal.

Yorkville is a senior secured lender to BlueCreek.

Shares of JAG closed at 22 cents on Friday, up almost 26% from the previous day.
Filing: 8-K