By Sheri Kasprzak
New York, June 23 - 5G Wireless Communications, Inc. wrapped a $1.2 million private placement of two-year convertible debentures.
The 12% debentures were purchased by Montgomery Equity Partners, LP.
The debentures are due June 13, 2008 and are convertible into common shares at the lesser of $0.3155 each or 80% of the lowest closing bid price for the five trading days before conversion.
5G may redeem the debentures at a 20% premium plus interest after Jan. 15, 2007.
Montgomery received warrants for 800,000 shares, exercisable at $0.15 each; for 800,000 shares, exercisable at $0.35 each; and for 800,000 shares, exercisable at $0.35 each or 80% of the lowest closing bid price before exercise. The warrants expire in five years.
Based in Marina del Ray, Calif., 5G develops wireless broadband equipment for governments and universities.
| Issuer: | 5G Wireless Communications, Inc.
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| Issue: | Convertible debentures
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| Amount: | $1.2 million
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| Maturity: | June 13, 2008
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| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | The lesser of $0.3155 each or 80% of the lowest closing bid price for the five trading days before conversion
|
| Warrants: | For 2.4 million shares
|
| Warrant expiration: | Five years
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| Warrant strike price: | $0.15 for 800,000 shares; $0.35 for 800,000 shares; $0.35 or 80% of the lowest closing bid price before exercise
|
| Investor: | Montgomery Equity Partners, LP
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| Settlement date: | June 13
|
| Announcement date: | June 23
|
| Stock symbol: | OTCBB: FGWI
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| Stock price: | $0.48 at close June 23
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