By Sheri Kasprzak
New York, March 22 - Elandia, Inc. closed a $25.3 million private placement of convertible notes with Stanford International Bank, Ltd.
The 10% notes are due in four years and are convertible into series A convertible preferred shares at $5.00 each once the company authorizes the creation and issuance of series A preferreds. The 10% preferreds are convertible into common shares at $2.50 each.
The investor also received warrants for 1.518 million shares, exercisable at $5.00 each for seven years.
vFinance Investments, Inc. was the placement agent.
Proceeds will be used to acquire a controlling interest in the stock of Latin Node, Inc. and to refinance a $3.3 million promissory note. The rest will be used for working capital.
Elandia, based in Fort Lauderdale, Fla., is a wireless telecommunications provider.
| Issuer: | Elandia, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $25.3 million
|
| Maturity: | Four years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | Notes are convertible into 10% series A convertible preferreds at $5.00 each; preferreds are convertible into common shares at $2.50 each
|
| Warrants: | For 1.518 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $5.00
|
| Investor: | Stanford International Bank, Ltd.
|
| Placement agent: | vFinance Investments, Inc.
|
| Settlement date: | Feb. 16
|
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