Published on September 18, 2017
NEW YORK, Sept. 19, 2017 /PRNewswire/ -- Jerrick Media Holdings, Inc., (OTCQB: JMDA) (the "Company" or "Jerrick"), a technology company, announced today that it has redeemed the 8.5% Convertible Redeemable Debenture entered into between July 11-21, 2017 (the "Debentures") that were due to mature between April 11-21, 2018. Company management decided that the Debentures did not support its longer term strategic capital objectives. To accommodate the Company's decision to redeem the Debentures, the holders reduced the associated prepayment penalties from 50.0% down to 17.5%.
Concurrent with the Debenture redemption, the Company completed the initial closings of its private placement offering of two-year, 15% Secured Convertible Promissory Notes, raising gross proceeds of approximately $900,000 led by new investments from board members and insiders. In addition, existing debtholders have agreed to exchange their notes and accrued, but unpaid interest totaling approximately $1.5 million into the current private placement, thereby significantly reducing the Company's short-term debt. The Company intends to raise up to $6.0 million in the new offering, including the roll-over of existing debt.
"The current capital raise will provide additional resources needed to fuel our rapid growth rate even further, as we incorporate a wider range of revenue programs into our network," commented Jeremy Frommer, Jerrick's chief executive officer. "In just the first two weeks of September, the number of content creators has increased from 27,500 to over 40,000 and our monthly submission rates have grown exponentially - further details will be provided shortly. Jerrick's arbitrage model is beginning to draw in the leading social media, blogging influencers, which, in turn, has attracted a fast expanding base of readers and devotees."
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