New York, June 30 - Debt Resolve, Inc. said it has completed a private placement of senior secured promissory notes for $3,481,762.
All but $800,000 of the notes are convertible into common stock at 70% of the price per share in a public offering. The notes convert automatically if a public offering occurs, with 50% converting in to stock and the remaining 50% being repaid in cash from the offering proceeds.
The notes pay interest at 15% and mature on Oct. 31, 2006, but will automatically extend to April 30, 2007 if its existing 7% senior convertible promissory notes are extended past Oct. 31, 2006.
Investors received three-year warrants to buy the number of shares equal to the principal amount of the notes divided by $0.30 at a price of $0.001.
Capital Growth Financial, LLC and Maxim Group LLC were placement agents.
Holders of $977,012 of existing short-term notes and shareholder notes converted the principal and accrued interest into the new notes.
Based in White Plains, N.Y., Debt Resolve provides online services for debt collection and consolidation.
| Issuer: | Debt Resolve, Inc.
|
| Issue: | Senior secured promissory notes/senior secured convertible promissory notes
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| Amount: | $3,481,762 total, $800,000 not convertible
|
| Maturity: | Oct. 31, 2006
|
| Coupon: | 15%
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| Price: | Par
|
| Yield: | 15%
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| Conversion price: | 70% of the price per share in a public offering, 50% converts to stock, 50% repaid in cash
|
| Warrants: | For a number of shares equal to the principal amount divided by $0.30
|
| Warrant strike price: | $0.001
|
| Warrant term: | 3 years
|
| Placement agents: | Capital Growth Financial, LLC, Maxim Group LLC
|
| Settlement date: | June 26
|
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