By Sheri Kasprzak
Atlanta, March 31 - 5G Wireless Communications Inc. said it has wrapped a private placement for $1 million.
The company sold convertible promissory notes to Longview Fund LP, Longview Equity Fund LP and Longview International Equity Fund LP. The investors have agreed to buy an additional $1 million in notes.
The notes mature Sept. 22, 2007 and bear interest at 5% annually. The notes are convertible into common shares at the lower of $0.01 or 75% of the average of the five lowest closing bid prices for 90 trading days before conversion.
The company also issued class A warrants for up to 100 shares for each 100 shares issued upon conversion on the closing date. The warrants are exercisable at $0.01 each for five years.
As part of the offering, chief executive officer Jerry Dix and executive vice president Don Boudewyn have agreed to not sell or dispose of common stock or options, warrants or other rights to buy securities for one year.
Based in Marina del Rey, Calif., 5G provides equipment to set up broadband networks.
| Issuer: | 5G Wireless Communications Inc.
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| Issue: | Convertible promissory notes
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| Amount: | $1 million
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| Maturity: | Sept. 22, 2007
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| Coupon: | 5%
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| Price: | Par
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| Yield: | 5%
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| Conversion price: | The lesser of $0.01 or 75% of the average of the five lowest closing bid prices for 90 trading days before conversion
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| Warrants: | For 100 shares for each 100 shares issued upon conversion on closing date
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.01
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| Investors: | Longview Fund LP, Longview Equity Fund LP and Longview International Equity Fund LP
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| Pricing date: | Sept. 22, 2004
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| Settlement date: | March 22
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| Stock price: | $0.01 at close March 22
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