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Silverstar Holdings, Ltd. (SSTR) Completes Convertible Debt Financing of $7.5 Million

Silverstar, an international publisher and developer of interactive entertainment software, has completed a $7.5 million four-year fixed interest secured convertible debenture. The Company will use about $3.9 million of the proceeds to complete the final earn-out payment for acquisition of Empire Interactive, a leading developer and publisher of interactive entertainment software games.

Interest of 9% per annum is payable in cash or kind for the term of the loan subject to certain volume requirements. The conversion price is $1.20 per share and includes mandatory conversion provision at $2.40 per share or double the exercise price. The agreement also includes warrant coverage for about 3,125,000 common shares at $1.50.

Clive Kabatznik, President and CEO of Silverstar Holdings said, “Completed at a premium to the market, this investment recognizes our success and expresses a vote of confidence in our potential. This financing will help us expand and accelerate our award-winning product pipeline, improve our position as one of the few remaining independent middle market interactive entertainment companies that are publicly traded in the U.S.”

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