MediaBay will borrow $1.5 million in funding from its chairman, Norton Herrick.
This funding by Herrick brings the total amount of investment from Herrick, his sons and wholly owned affiliates in MediaBay at $20 million. The loan has a five-year maturity and is convertible into common stock at $2 per share.
Herrick has already loaned MediaBay $1 million of the funds, with an additional $150,000 slated to be received in October and $350,000 in November.
Cedar Knolls, NJ-based Media Bay is a direct-response audio-content producer.
The investment will be used to grow the audio book club area, which is the core business, and to roll out the “World
Network
