Investor receives 10% of positive operational cash flow per quarter
By Devika Patel
Knoxville, Tenn., Nov. 15 - ERF Wireless Inc. negotiated a $3 million debt credit line with Dakota Capital Fund LLC on Nov. 8, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company has immediate access to $2 million of the loan, and the investor may increase the amount by $1 million within 90 days of Oct. 31.
The loan will be repaid based on a four-year amortization of the balance at each quarter end, plus 10% of positive operational cash flow for that quarter. The company may prepay the balance at any time, in whole or in part, without any penalty.
Based in League City, Texas, ERF is a wireless and broadband products and services provider.
| Issuer: | ERF Wireless Inc.
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| Issue: | Debt credit line
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| Amount: | $3 million
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| Maturity: | Four years
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| Yield: | 10% of positive operational cash flow per quarter
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| Warrants: | No
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| Investor: | Dakota Capital Fund LLC
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| Pricing date: | Nov. 8
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| Stock symbol: | OTCBB: ERFB
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| Stock price: | $2.95 at close Nov. 8
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| Market capitalization: | $5.26 million
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