New Issue: Flint Telecom to raise $2 million in convertible promissory notes sale

By Devika Patel

Knoxville, Tenn., July 7 - Flint Telecom Group, Inc. settled a $600,000 tranche of a $2 million private placement of 10% subordinated secured convertible promissory notes on June 30, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The notes, sold at a 15% discount, mature in 18 months and are convertible into 2,181,818 restricted common shares at $0.275 per share.

The investors also received warrants for 2,181,818 shares, exercisable at $0.35 for five years.

Los Gatos, Calif.'s Flint Telecom is a provider of enterprise application software connecting employees wirelessly to business systems, information and processes.

Issuer:	Flint Telecom Group, Inc.
Issue:	Subordinated secured convertible promissory notes
Amount:	$2 million
Maturity:	18 months
Coupon:	10%
Price:	85
Yield:	10%
Conversion price:	$0.275
Conversion ratio:	Into 2,181,818 shares
Warrants:	For 2,181,818 shares
Warrant expiration:	Five years
Warrant strike price:	$0.35
Settlement date:	June 30 (for $600,000)
Stock symbol:	OTCBB: FLTT
Stock price:	$0.55 at close June 30
Market capitalization:	$25.1 million

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