SpiralFrog Picks Up $2 Million In Senior Notes

Ad-supported, free music download service SpiralFrog has announced an additional $2 million in funding today through the "private placement of Senior Secured Exchangeable Notes". It looks like the principal amount is due on April 19,2008 and can be converted to common company shares. The release was very short and didn’t contain many details.

I haven’t heard much from SpiralFrog since our last post just about a year ago when many of the company execs bailed. Nick covered the company in August and noted that the system is DRM heavy so that the songs can be provided for free. It looks like each download is accessible for 30 days and then has to be renewed by viewing and interacting with more ads. It’s an interesting approach – too bad the DRM haters will hate on this as well even though it’s not the same as a music purchase.

The release noted that SpiralFrog intends to use the net proceeds from the offering to fund the growth of the company, including for the acquisition of additional content for the site.