By Devika Patel
Knoxville, Tenn., June 23 - Flint Telecom Group, Inc. negotiated a $10 million two-year reserve equity financing agreement with AGS Capital Group, LLC on June 17, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The shares will be sold at a purchase price of between 5% and 50% of the lowest volume-weighted average price of the company's common stock during the five-consecutive-trading-day period following each advance notice.
The maximum amount of each advance is the greater of $250,000 or 500% of the average daily trading volume for the 10 immediately preceding days divided by the VWAP.
The company is also required to pay AGS $15,000 in cash, 11,288,700 restricted common shares and 153,779.66 series G convertible preferred shares valued at $0.60 each.
The preferreds will be convertible into a total of 15,377,966 shares of common stock at any time after Flint's Articles of Incorporation are amended to increase the number of total authorized shares of common stock to 900 million or greater.
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: | Reserve equity financing agreement
|
| Amount: | $10 million
|
| Tenor: | Two years
|
| Price: | Between 5% and 50% of the lowest VWAP of the company's common stock during the five-consecutive-trading-day period following each advance notice
|
| Warrants: | No
|
| Investor: | AGS Capital Group, LLC
|
| Fees: | $15,000, 11,288,700 restricted common shares and 153,779.66 series G convertible preferred shares
|
| Settlement date: | June 17
|
| Stock symbol: | OTCBB: FLTT
|
| Stock price: | $0.01 at close June 17
|
| Market capitalization: | $730,970
|
© 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.
