New Issue: Elephant Talk seals $1.19 million convertible promissory notes tranche

By Devika Patel

Knoxville, Tenn., Aug. 24 - Elephant Talk Communications, Inc. settled a $1.19 million tranche of a private placement of 12% secured convertible promissory notes on Aug. 18, according to an 8-K filed Monday with the Securities and Exchange Commission. The company raised $5.11 million on July 31.

The notes mature on March 31, 2010 and are convertible into common shares at a price equal to 85% of the share price in any future financings the company may conduct.

The investors also received warrants for 6,296,000 shares, exercisable at $1.00 for five years.

Based in Orange, Calif., Elephant Talk is a long-distance communications carrier.

Issuer:	Elephant Talk Communications, Inc.
Issue:	Secured convertible promissory notes
Amount:	$6,296,000
Maturity:	March 31, 2010
Coupon:	12%
Price:	Par
Yield:	12%
Conversion price:	85% of future offering share price
Warrants:	For 6,296,000 shares
Warrant expiration:	Five years
Warrant strike price:	$1.00
Settlement date:	July 31 (for $5,111,000), Aug. 18 (for $1,185,000)
Stock symbol:	OTCBB: ETAK
Stock price:	$1.05 at close July 31

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