Five-year notes sold with 10-year warrants for 13,325,000 shares
By Devika Patel
Knoxville, Tenn., Nov. 2 - Fusion Telecommunications International, Inc. sold $16.5 million of senior notes in a private placement on Oct. 29, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes were sold to Praesidian Capital Opportunity Fund III, LP, Praesidian Capital Opportunity Fund III-A, LP and Plexus Fund II, LP.
The notes consist of $6.5 million of 10% five-year series A senior notes and $10 million of 11.5% five-year series B senior notes. Both notes are due Oct. 27, 2017.
The investors also received warrants for 13,325,000 shares. The warrants are each exercisable at $0.01, a 92.86% discount to the Oct. 26 closing share price of $0.14. The warrants expire on Oct. 29, 2022. The company also paid the lenders a transaction fee of $330,000.
Fusion is a telecommunications company based in New York.
Issuer: | Fusion Telecommunications International, Inc.
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Issue: | Senior notes
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Amount: | $16.5 million
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Maturity: | Oct. 27, 2017
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Warrants: | For 13,325,000 shares
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Warrant expiration: | Oct. 29, 2022
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Warrant strike price: | $0.01
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Investors: | Praesidian Capital Opportunity Fund III, LP, Praesidian Capital Opportunity Fund III-A, LP and Plexus Fund II, LP
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Fees: | $330,000
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Settlement date: | Oct. 29
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Stock symbol: | OTCBB: FSNN
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Stock price: | $0.14 at close Oct. 26
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Market capitalization: | $21.64 million
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Series A notes
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Amount: | $6.5 million
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Coupon: | 10%
|
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Series B notes
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Amount: | $10 million
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Coupon: | 11.5%
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