By Devika Patel
Knoxville, Tenn., Dec. 18 - Etelos, Inc. sold an additional $1 million of 10% senior secured convertible debentures in a private placement on Dec. 17, according to an 8-K filed Friday with the Securities and Exchange Commission. It sold $2 million of the debentures on Sept. 29.
The notes mature in two years and are convertible into common shares at $0.50 per share. They may be redeemed at par plus interest under certain conditions.
Investors also received warrants for 3 million common shares, which are exercisable at $0.60, warrants for 2.25 million common shares, which are exercisable at $0.01, and 750,000 restricted common shares.
Etelos is a Maple Valley, Wash., provider of software services.
| Issuer: | Etelos, Inc.
|
| Issue: | Senior secured convertible debentures, 750,000 common shares
|
| Amount: | $3 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.50
|
| Warrants: | For 5.25 million shares
|
| Warrant strike price: | $0.60 (for 3 million shares), $0.01 (for 2.25 million shares)
|
| Settlement date: | Sept. 29 (for $2 million), Dec. 17 (for $1 million)
|
| Stock symbol: | OTCBB: ETLO
|
| Stock price: | $0.78 at close Sept. 29
|
| Market capitalization: | $19.9 million
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