New Issue: Farmstead raises another $1.1 million from private placement

By Sheri Kasprzak

New York, April 21 - Farmstead Telephone Group, Inc. said it has settled another tranche of its previously announced private placement, this time for $1,103,402.

The company issued 64,906 units at $17.00 apiece to Michael Bloch, Robert A. Smith, Robert Gillman, Julian Eaton, Julian F. & Mary J. Eaton, Robert H. Chanson, Joan Robertson, Robert B. Rowley, William M. Goatley Revocable Trust DTD 05/09/89, MidSouth Investor Fund LP, Ronald C. Smiley, Lewis Opportunity Fund, LP, Sat P. Dewan, Dewan Retirement Plan Trust, Richard Dwayne Roberson, OT Finance, SA, Robert W. Russell, Joseph & Kimberly Greenspan, Thomas Link, Nite Capital, Richard & Christine VonderSitt, Deborah A. Picon, Danid P. Hanlon, S. Wistar Lewis, Alan S. Wirshborn, Gail B. Shanklin, Benjamin S. Eichholtz, as Custodian for David Eichholtz and Daniel Eichholtz, Michaels Associates.

The units consist of one share of series A convertible preferred stock and warrants for five common shares.

Each 8% preferred is initially convertible into 10 common shares.

The warrants are exercisable at $2.125 each for five years.

On April 20, Farmstead settled a $1,853,391 round of the deal, selling 109,023 units.

On March 21, the company completed the first closing of the deal, selling 91,433 units for proceeds of $1,554,361.

Also, on Feb. 14, the company completed the sale of a $1 million 10% convertible promissory note with Sotomar - Empreendimentos Industriais e Imobiliarios, SA.

Located in East Hartford, Conn., Farmstead installs and maintains communications hardware.

Issuer:	Farmstead Telephone Group, Inc.
Issue:	Units of one share of series A convertible preferred stock and warrants for five common shares
Amount:	$1,103,402
Units:	64,906
Price:	$17.00
Dividends:	8%
Conversion ratio:	Each preferred into 10 common shares
Warrants:	For five shares per unit
Warrant expiration:	Five years
Warrant strike price:	$2.125
Investors:	Michael Bloch, Robert A. Smith, Robert Gillman, Julian Eaton, Julian F. & Mary J. Eaton, Robert H. Chanson, Joan Robertson, Robert B. Rowley, William M. Goatley Revocable Trust DTD 05/09/89, MidSouth Investor Fund LP, Ronald C. Smiley, Lewis Opportunity Fund, LP, Sat P. Dewan, Dewan Retirement Plan Trust, Richard Dwayne Roberson, OT Finance, SA, Robert W. Russell, Joseph & Kimberly Greenspan, Thomas Link, Nite Capital, Richard & Christine VonderSitt, Deborah A. Picon, Danid P. Hanlon, S. Wistar Lewis, Alan S. Wirshborn, Gail B. Shanklin, Benjamin S. Eichholtz, as Custodian for David Eichholtz and Daniel Eichholtz, Michaels Associates
Settlement date:	April 17
Announcement date:	April 21
Stock symbol:	OTCBB: FTGP
Stock price:	$1.95 at close April 21

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