By Sheri Kasprzak
New York, June 8 - eLec Communications Corp. settled a $1.7 million private placement of notes with Laurus Master Fund, Ltd.
Laurus bought the secured term note, which matures May 31, 2009 and bears interest at Prime rate plus 200 basis points.
The investor also came away with warrants for 3,359,856 shares, exercisable at $0.10 each through May 31, 2020.
Proceeds from the offering will be used for the acquisition of Liberty Bell Telecom and for working capital.
In other news, eLec and Laurus also entered into an agreement to make the existing convertible notes held by Laurus non-convertible.
eLec, based in White Plains, N.Y., is a communications provider.
| Issuer: | eLec Communications Corp.
|
| Issue: | Secured term note
|
| Amount: | $1.7 million
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| Maturity: | May 31, 2009
|
| Coupon: | Prime rate plus 200 basis points
|
| Warrants: | For 3,359,856 shares
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| Warrant expiration: | May 31, 2020
|
| Warrant strike price: | $0.10
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | May 31
|
| Stock symbol: | OTCBB: ELEC
|
| Stock price: | $0.35 at close May 31
|
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