By Sheri Kasprzak
Atlanta, May 5 - Epixtar Corp. said it has wrapped a private placement of senior secured convertible notes for $7 million.
The company and its subsidiary, Voxx Corp., sold the notes to Laurus Master Fund Ltd. and Laidlaw & Co. Ltd.
The notes mature April 29, 2008, bear interest at Prime rate plus 200 basis points and are convertible into common shares of Epixtar at $1.00 each.
The notes are secured by the assets of Voxx and may be prepaid at any time at 130% of the then-outstanding principal balance.
The investors received warrants for 556,596 shares of Voxx, exercisable at a price equal to the initial public offering price. The investors will also receive options to buy 4,167,028 shares of Voxx on a fully diluted basis at the time of closing at $0.001 each.
The proceeds of the offering were used to repay $1.1 million in outstanding debt. The remainder was used for general corporate purposes.
As a condition of the offering, Epixtar repriced the warrants on its existing $5 million with Laurus to $1.00 each from a range of $4.05 to $4.66 per share.
Based in Miami, Epixtar provides business process outsourcing services via the internet.
| Issuer: | Epixtar Corp.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $7 million
|
| Maturity: | April 29, 2008
|
| Coupon: | Prime rate plus 200 basis points
|
| Conversion price: | $1.00
|
| Call: | May be prepaid at any time at 130% of the then-outstanding principal
|
| Warrants: | For 556,596 shares of Voxx Corp.
|
| Warrant strike price: | $0.001
|
| Investors: | Laurus Master Fund Ltd. and Laidlaw & Co. Ltd.
|
| Settlement date: | April 29
|
| Stock price: | $0.75 at close April 29
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
