New Issue: EnterConnect raises $4.82 million from sale of convertibles

By Laura Lutz

Des Moines, Dec. 21 - EnterConnect, Inc. settled a $4.82 million private placement of senior secured convertible notes and warrants with institutional investors, according to an 8-K filing with the Securities and Exchange Commission.

The notes mature on Dec. 20, 2010 and bear interest at 10% per year. They are convertible into 8,038,333 shares.

The investors also received warrants for 8,038,333 shares, exercisable at $0.80 per share for five years.

Worldwide Gateway Co., Ltd. acted as agent.

Based in San Jose, Calif., EnterConnect produces portal software for businesses. The company said its stock recently began trading on the OTC Bulletin Board under the symbol "ECNI."

Issuer:	EnterConnect, Inc.
Issue:	Senior secured convertible notes
Amount:	$4,823,000
Maturity:	Dec. 20, 2010
Coupon:	10%
Price:	Par
Yield:	10%
Conversion ratio:	Into 8,038,333 shares
Warrants:	For 8,038,333
Warrant expiration:	Five years
Warrant strike price:	$0.80
Agent:	Worldwide Gateway Co., Ltd.
Settlement date:	Dec. 20
Stock symbol:	OTCBB: ECNI
Stock price:	$0.95 at close Dec. 20

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