By Sheri Kasprzak
New York, Nov. 16 - Enclaves Group, Inc. said it has extended a previous standby equity distribution agreement with Cornell Capital Partners, LP to $46 million from $40 million.
Cornell may now buy up to $46 million in shares from Enclaves at 97% of the lowest volume weighted average price for the five trading days after notice of a draw.
There is a $1.5 million limit on each advance.
The company first received the equity line for $40 million Dec. 28, 2004.
Newbridge Securities Corp. was the placement agent.
Enclaves also restated two 12% convertible debentures issued in December 2004 - one for $1,991,217 issued to Cornell and the other for $2,579,925 issued to Montgomery Equity Partners, Ltd.
The debentures are convertible at the average closing bid price for the five trading before a registration statement is filed.
The debentures mature on Jan. 15, 2007.
Based in Yonkers, N.Y., Enclaves is a telecommunications services provider.
| Issuer: | Enclaves Group, Inc.
|
| Issue: | Standby equity distribution agreement
|
| Amount: | $46 million
|
| Price: | 97% of the lowest volume weighted average price for the five trading days after notice of a draw
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners, LP
|
| Placement agent: | Newbridge Securities Corp.
|
| Settlement date: | Nov. 9
|
| Stock price: | $0.15 at close Nov. 9
|
|
|
| Issuer: | Enclaves Group, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $4,751,142
|
| Maturity: | Jan. 15, 2007
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | Equal to the average close bid price for the five trading days before a registration statement is filed
|
| Investors: | Cornell Capital Partners, LP and Montgomery Equity Partners, Ltd.
|
| Settlement date: | Nov. 9
|
| Stock price: | $0.15 at close Nov. 9
|
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