Glowpoint raises $1.8 million, restructures debt; Islamic Bank of Britain, Albidon tap investors

By Kenneth Lim

Boston, Nov. 26 - Glowpoint, Inc. raised $1.8 million in a private placement of convertible preferred stock as part of a deal to restructure its debt.

Separately, Islamic Bank of Britain plc plans to raise £7.49 million with an existing shareholder to provide working capital.

And Albidon Ltd. plans to raise $5.06 million through a stock placement to a single investor and $4.05 million from another investor.

Glowpoint restructures debt

Glowpoint sold about $1.8 million of 5% series A convertible preferred stock as part of a broader debt-restructuring exercise.

Each of the preferreds has a stated value of $7,500 and is convertible into 10,000 common shares, or an initial conversion price of $0.75. Investors also received series A-3 warrants for 5,000 common shares per preferred; each warrant is exercisable at $0.40 for five years.

Glowpoint common stock (OTCBB: GLOW) closed unchanged at $0.27 on Wednesday. Glowpoint has a market capitalization of about $12.57 million.

Proceeds of the preferred placement will be used to fund growth and enable the company to achieve its goal of positive operating income.

Hillside, N.J.-based Glowpoint is an internet protocol-based video communications service provider.

The deal was part of debt restructuring move by the company.

Holders of about $7.5 million of the company's convertible senior secured notes exchanged their notes for additional series A convertible preferred stock. Holders of the remaining $5 million of convertible notes accepted an amendment that extended their maturity to Sept. 30, 2010.

"In the current economic climate, we are pleased to successfully complete this transaction," Glowpoint chief executive Michael Brandofino said in a statement. "The fact that our debt holders converted a significant portion of their outstanding debt to equity and added to their investment with additional capital at a purchase price significantly above our current market price represents a strong vote of confidence in Glowpoint.

"With the remaining debt maturity extended almost two years, we are free to focus on growth and achieving positive operating income. The management team feels confident that this goal can be achieved and, as part of this transaction, agreed to forego any cash, option or stock bonuses until we have achieved two consecutive quarters of positive operating income."

Islamic Bank sells to investor

Islamic Bank of Britain is placing £7.49 million of its common stock to existing shareholder Sheikh Thani Bin Abdulla Bin Thani Jasim Al Thani.

The company will sell 127.47 million ordinary shares at 5.875p per share to Sheikh Thani, who, together with Qatar International Islamic Bank and Qatar Islamic Insurance Co., will control about 44.98% of Islamic Bank of Britain's shares after the deal.

Islamic Bank of Britain common stock (London: IBB) slipped 3.75% or 0.25p to close at 6.75p on Wednesday.

Proceeds will be used as working capital.

Islamic Bank of Britain is a Birmingham, England-based retail bank.

In a press release, the company said the placement would provide immediate capital to ensure that the bank has an appropriate buffer over minimum capital requirements. The capital will also help to fund growth in new areas, including the creation of a dedicated premier banking channel and improve the bank's standing and credit rating.

Albidon places with Jinchuan

Albidon plans to sell $5.06 million of its common stock through a private placement to Jinchuan Group Ltd.

The placement comprises about 19.47 million shares at $0.26 apiece. Albidon, a A$42.9 million market capitalization company, saw its common stock (ASX: ALB) close unchanged at A$0.26 on Wednesday.

Proceeds will provide additional working capital.

Albidon is a mineral exploration and development company based in West Perth, Australia.

Jinchuan also agreed to convert $5 million of Albidon-issued subordinated debt that it held into 10 million common shares of Albidon at $0.50 apiece. The conversion lowered Albidon's subordinated debt amount to $15 million.

The deal will give Jinchuan, a China-based nickel, cobalt and platinum group metals producer, 18% of Albidon's shares and the right to nominate a director.

Albidon is also placing $4.05 million of its stock to two funds managed by a "large U.K.-based equity fund," the company said in a press release.

Each of the funds subscribed for about 7.79 million shares at $0.26 apiece.

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