Digital Recorders extends debt with Laurus, issues stock

New York, Jan. 8 - Digital Recorders, Inc. said it agreed to extend debt owed to Laurus Master Fund, Ltd. in exchange for issuance of stock.

Under the terms, Digital Recorders extended the maturity of its $6 million secured non-convertible revolving note with Laurus to June 30, 2008 from March 15, 2008.

A $160,000 fee payable at maturity of a $1.6 million promissory note with Laurus was eliminated and Digital Recorders will have the option to extend up to $500,000 of the principal amount of the note to April 30, 2008.

The company issued the revolving note on March 16, 2006 along with 550,000 warrants. The promissory note was issued on April 28, 2006 along with 80,000 warrants.

As part of the latest agreement with Laurus, executed on Dec. 29, the warrants were amended to increase the maximum amount of Digital Recorders' common stock that Laurus can hold to 9.99% from 4.99%.

Laurus has agreed to hold its common stock for a 12-month period and after that to limit sales to no more than 25% of the trailing monthly dollar volume.

In return for the agreements, the Dallas-based provider of software and hardware used in the transportation, law enforcement and security digital communication systems sectors issued 225,000 shares to Laurus and paid an $18,000 servicing fee.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.