NOTE PAYABLE - RELATED PARTY AND RELATED PARTY ADVANCES |
70 Months Ended |
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Oct. 28, 2011 | |
| NOTE PAYABLE - RELATED PARTY AND RELATED PARTY ADVANCES |
NOTE 2 –NOTE PAYABLE - RELATED PARTY AND RELATED PARTY
ADVANCES:
The
Company received a total of approximately $221,000 from Broadband
Capital Management, LLC (“BCM”), a registered
broker-dealer, $120,000 of which has been refinanced as described
below. The remainder, approximately $101,000, is a
non-interest bearing advance and due on demand. Michael
Rapp, the Company's President and director, and Philip Wagenheim,
the Company's Secretary and director, serve as management of
BCM. BCM was the lead underwriter of the
Offering.
On
May 27, 2011, as amended on July 27, 2011, the Company entered into
a loan payable agreement for approximately $120,000 with BCM, which
consolidated all of the Company’s accrued interest-related
party, related party advances and note payable-related party
outstanding as of such date into one instrument as well as provided
additional advances to the Company. The loan is payable
upon the consummation of the Company’s initial business
transaction, bears no interest and contains a waiver of any and all
rights to the trust account that will hold the proceeds of the
Offering and the proceeds of the sale of the securities issued in a
private placement to be consummated concurrently with the
completion of the initial business combination of the
Company. Following the Closing of the Offering and prior
to the consummation of the initial business transaction, BCM has
agreed to loan the Company funds from time to time of up to
$800,000, including the amounts above, under an Expense Advancement
Agreement. See also Note 1.
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