Max Sound Corporation announced today that it has entered into a Fifty Million Dollar Equity Credit Line Facility on a Firm Commitment Basis with GEM Global Yield Fund Limited (“GEM”) for a term of 2 years. This relationship with GEM was facilitated by Allen & Associates, LLC, who serves as Corporate Finance Advisor to Max Sound. According to this facility, Max Sound at its sole option and timing may issue shares to GEM at 90 per cent of the volume weighted average price of the shares over a period of 10 trading days following a draw down notice sent to GEM by Max Sound.
Under the terms of the deal, GEM must deliver at least three million dollars of additional licensing fees or funding during the next six months to Max Sound as a bona fide offer at fair market value. In addition, GEM has agreed with Max Sound that the Company will become S-3 Eligible prior to filing a registration statement to access the equity line.
Finally, GEM received as part of the agreement, the exclusive rights to distribute Max Sound products in France and Mexico on the Company’s to be determined standard licensing terms or the most favorable terms offered to other nationwide distributors.
“This funding relationship with GEM answers yet another critical question to the market and to the world about Max Sound, namely, how is this Company going to have access to enough funding in the future to fully realize its potential,” said Max Sound Corporation CEO John Blaisure. “The structure of this deal provides us with significant opportunities as we establish our technology in the entertainment and multi-media markets. We are ecstatic to be working with GEM because they have a proven track record spanning two decades of assisting emerging companies on their path to success.”
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