By Sheri Kasprzak
New York, March 24 - FreeStar Technology Corp. said it has terminated its previously announced $9.2 million PIPE agreement with Soren Moberg. A group of European investors agreed to buy the shares in the terminated agreement.
On Feb. 1, FreeStar agreed to sell 46 million shares to Moberg at $0.20 each.
In a form 8-K filed by the Securities and Exchange Commission Friday, FreeStar said the agreement was canceled after Moberg did not fund the first payment of the offering.
A new group of European investors agreed to buy the 46 million shares at the same price as the original agreement.
The new investors also received warrants for 50 million shares, exercisable at prices ranging from $1.50 to $8.50 each for two years.
In the new agreement, the first payment of $4.6 million is due immediately with the second payment of $4.6 million due in three months.
C20 Investments was the placement agent for both deals.
Dublin, Ireland-based FreeStar develops payment-processing technologies.
| Issuer: | FreeStar Technology Corp.
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| Issue: | Stock
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| Amount: | $9.2 million
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| Shares: | 46 million
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| Price: | $0.20
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| Warrants: | For 50 million shares
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| Warrant expiration: | Two years
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| Warrant strike price: | Prices ranging from $1.50 to $8.50
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| Placement agent: | C20 Investments
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| Settlement date: | March 23
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| Stock symbol: | OTCBB: FSRT
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| Stock price: | $0.48 at close March 23
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