10% notes sold with warrants for 1 million shares to Bernard Moncarey
By Devika Patel
Knoxville, Tenn., Aug. 22 - Elephant Talk Communications Corp. arranged a €2 million private placement of 10% convertible notes with Bernard Moncarey on Aug. 17, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The note matures in July 2, 2014 and is convertible into common stock at $0.887 per share. The conversion price is a 13.72% premium to the Aug. 16 closing share price of $0.78.
Moncarey also received five-year warrants for 1 million shares, which are each exercisable at $0.887, which is also a 13.72% premium to the Aug. 16 closing share price.
Proceeds will be used for working capital.
The provider of mobile networking software and services is based in Oklahoma City.
| Issuer: | Elephant Talk Communications Corp.
|
| Issue: | Convertible note
|
| Amount: | €2 million
|
| Maturity: | July 2, 2014
|
| Coupon: | 10%
|
| Conversion price: | $0.887
|
| Warrants: | For 1 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.887
|
| Investors: | Bernard Moncarey
|
| Pricing date: | Aug. 17
|
| Stock symbol: | NYSE: ETAK
|
| Stock price: | $0.78 at close Aug. 16
|
| Market capitalization: | $99.88 million
|
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