By Devika Patel
Knoxville, Tenn., Sept. 11 - Elandia International Inc. amended the terms of a private placement of preferred stock with Stanford International Bank Ltd., the company's principal stockholder, on Sept. 5, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced Feb. 20.
The company sold $40 million of the preferreds to the bank on Feb. 28, and had planned to sell an additional $40 million in preferreds to the bank in future installments.
The Sept. 5 amendment to the agreement has brought Stanford International's preferred purchase obligation down to $15.8 million from $20 million.
This additional purchase will be made in five weekly tranches beginning on Nov. 7.
The company also will issue an additional 1,643,000 warrants to the bank in connection with this purchase.
As previously reported, Stanford International agreed in February to buy up to 5,925,926 shares of Elandia's series B convertible preferred stock along with warrants for 4,158,000 common shares.
The warrants are exercisable for seven years at $0.001 per share.
The preferreds are convertible into common stock at $6.75 per common share.
Proceeds will be used for acquisitions, to augment Elandia's product portfolio and for general working capital needs.
Based in Fort Lauderdale, Fla., Elandia invests in telecommunications and information technology companies in emerging markets.
| Issuer: | Elandia International Inc.
|
| Issue: | Preferred stock
|
| Amount: | $55,798,275
|
| Conversion price: | $6.75
|
| Warrants: | For 5,801,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.001
|
| Investor: | Stanford International Bank Ltd.
|
| Fees: | $250,000
|
| Pricing date: | Feb. 20
|
| Amended: | Sept. 5
|
| Settlement date: | Feb. 28 (for $40 million)
|
| Stock symbol: | OTCBB: ELAN
|
| Stock price: | $0.35 at close Feb. 20
|
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