By Laura Lutz
Des Moines, Oct. 10 - eLEC Communications Corp. settled a private placement of secured term notes for $4 million.
Calliope Capital Corp., a subsidiary of Laurus Master Fund, Ltd., and Valens Offshore SPV II, Corp. bought the notes.
The notes mature on Sept. 30, 2010. They will bear interest at Prime rate plus 200 basis points, subject to a minimum rate of 9.75%. Interest is payable monthly.
The investors also received series A warrants for 94,722,072 shares, series B warrants for 7,893,506 shares and series C warrants for 23,680,518 shares.
All of the warrants are exercisable at $0.10 until Sept. 30, 2017.
Most of the proceeds will be used to support the growth of voice-over-broadband services of VoX Communications Corp., eLEC's subsidiary.
Based in White Plains, N.Y., eLEC provides internet communications services.
| Issuer: | eLEC Communications Corp.
|
| Issue: | Secured term notes
|
| Amount: | $4 million
|
| Maturity: | Sept. 30, 2010
|
| Coupon: | Prime rate plus 200 bps
|
| Price: | Par
|
| Warrants: | Series A warrants for 94,722,072 shares; series B warrants for 7,893,506 shares; series C warrants for 23,680,518 shares
|
| Warrant expiration: | Sept. 30, 2017
|
| Warrant strike price: | $0.10
|
| Settlement date: | Oct. 4
|
| Stock symbol: | OTCBB: ELEC
|
| Stock price: | $0.22 at close Oct. 4
|
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