Units consist of $30,000 convertible note, 100,000 five-year warrants
By Devika Patel
Knoxville, Tenn., Feb. 19 – Elephant Talk Communications Corp. raised $1,367,100 in a $4.2 million private placement of units from Dec. 31 through Feb. 19, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised net proceeds of $768,700 on Dec. 18.
The company is selling 140 units of a $30,000 9% unsecured subordinated convertible promissory note and 100,000 warrants at $30,000 per unit. The notes mature on Dec. 18, 2018 and convert to common shares at $0.30, an 11.11% premium to the Dec. 17 closing share price of $0.27. The company may force conversion.
The warrants are each exercisable at $0.45 for five years. The strike price is a 66.67% premium to the Dec. 17 closing share price.
The company sold 45.57 units in the closings from Dec. 31 through Feb. 19.
Proceeds will be used for working capital.
The provider of mobile networking software and services is based in Oklahoma City.
| Issuer: | Elephant Talk Communications Corp.
|
| Issue: | Units of a $30,000 unsecured subordinated convertible promissory note and 100,000 warrants
|
| Amount: | $4.2 million
|
| Units: | 140
|
| Price: | $30,000
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| Maturity: | Dec. 18, 2018
|
| Coupon: | 9%
|
| Conversion price: | $0.30
|
| Conversion premium: | 11.11%
|
| Call: | Yes
|
| Warrants: | 100,000 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.45
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| Settlement date: | Dec. 18 (for net proceeds of $768,700), Dec. 31 through Feb. 19 (for $1,367,100)
|
| Stock symbol: | NYSE: ETAK
|
| Stock price: | $0.27 at close Dec. 17
|
| Market capitalization: | $36.53 million
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