By Devika Patel
Knoxville, Tenn., June 6 - Communication Intelligence Corp. said it borrowed $3.64 million from Phoenix Venture Fund LLC and two individuals on June 5.
Interest on the loan accrues at 8% per annum, payable quarterly in arrears in cash or in kind at the company's option, and the loan matures June 5, 2010. It is secured by the company's assets.
The company received net proceeds of $2.68 million after financing related expenses of $325,000 and refinancing $600,000 of debt, as well as an additional $37,500 in 15% interest on the $600,000 through May 31.
The investors also received warrants for 25,982,143 common shares, which are exercisable at $0.14 until June 30, 2011.
Contemporaneously with the closing of the loan, the company also issued 1.04 million convertible preferred shares in exchange for the cancellation of $995,000 of existing debt, as well as an additional $45,000 in interest. The debt was due in September and December of 2008 and carried a 15% coupon.
The preferreds pay an 8% dividend per annum, which is payable quarterly in arrears in cash or in additional preferreds at the company's option, and have a liquidation preference of $1.00 per share over common stock.
The preferreds are convertible into common stock at the conversion price of $0.14
Communication Intelligence is a software company focused on biometric signature verification and input software based in Redwood Shores, Calif.
| Issuer: | Communication Intelligence Corp.
|
| Issue: | Secured loan
|
| Amount: | $3,637,500
|
| Maturity: | June 5, 2010
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Warrants: | For 25,982,143 shares
|
| Warrant expiration: | June 30, 2011
|
| Warrant strike price: | $0.14
|
| Investor: | Phoenix Venture Fund LLC
|
| Settlement date: | June 5
|
| Stock symbol: | OTCBB: CICI
|
| Stock price: | $0.185 at close June 5
|
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