By Devika Patel
Knoxville, Tenn., Aug. 22 - Elephant Talk Communications, Inc. announced in a press release and an 8-K filed Friday with the Securities and Exchange Commission that it took in $3 million as part a $7 million private placement of units, which was announced July 7.
The company received $3.3 million in an initial tranche, bringing the total proceeds raised to $6.3 million.
In this tranche, the company sold 2,847,018 units of one common share, one warrant and one half-share warrant at $1.05 per unit. Each of the whole warrants will be exercisable at $1.26 for five years. The whole half-share warrants are exercisable at $1.47 for five years.
Proceeds will be used for expansion of Elephant Talk's proprietary global telecom network and infrastructure.
Based in Orange, Calif., Elephant Talk is a long-distance communications carrier.
| Issuer: | Elephant Talk Communications, Inc.
|
| Issue: | Units of one common share, a warrant and a half-share warrant
|
| Amount: | $7 million
|
| Price: | $1.05
|
| Warrants: | 1.5 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.26 (full warrants), $1.47 (half-share warrants)
|
| Announcement date: | July 7
|
| Settlement date: | July 7 (for $3.3 million), Aug. 22 (for $2,989,368.90)
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| Stock symbol: | OTCBB: ETAK
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| Stock price: | $1.70 at close July 7
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