By Sheri Kasprzak
New York, June 13 - Hugo International Telecom, Inc. said it agreed to sell $22 million in discounted convertible debentures to Cornell Capital Partners, LP for total proceeds of $19.8 million.
The company already issued $5.5 million in debentures for proceeds of $4.95 million. The 5% debentures will be sold at 90% of the principal amount.
The debentures are due June 7, 2009 and are convertible into common shares at $3.00 each.
In the second tranche, Cornell will buy another $5.5 million in principal of the notes for $4.95 million and in the final tranche, $11 million in principal for proceeds of $9.9 million.
Hugo may redeem the debentures at 120% of principal plus interest.
Cornell also received warrants for 1,125,000 shares, exercisable at $0.001 each for five years.
Based in Sandwich, Mass., Hugo was recently acquired by Mean Green Biofuels Corp. in a reverse merger and does not currently have any operations.
| Issuer: | Hugo International Telecom, Inc.
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| Issue: | Convertible debentures
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| Amount: | $22 million
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| Proceeds: | $19.8 million
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| Maturity: | June 7, 2009
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| Coupon: | 5%
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| Price: | 90
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| Conversion price: | $3.00
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| Warrants: | For 1,125,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.001
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | June 7
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| Stock symbol: | Pink Sheets: HGOT
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| Stock price: | $1.01 at close June 7
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