By Sheri Kasprzak
New York, Jan. 12 - i2 Telecom International, Inc. said it has completed a private placement of convertible debentures for $1.75 million.
The 10% secured debentures mature on Jan. 9, 2009 and are convertible into common shares at the lesser of $0.10 each or a 5% discount to the lowest daily volume weighted average price for the 30 consecutive trading days before conversion.
So far, the company has received $600,000. It will receive another $600,000 once a registration statement is filed and the final $550,000 once the registration statement becomes effective.
Cornell Capital Partners, LP is the investor.
Cornell received a warrant for 7.15 million shares, exercisable at $0.07 each for three years.
Atlanta-based i2 Telecom is a voice-over-internet protocol provider.
| Issuer: | i2 Telecom International, Inc.
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| Issue: | Secured convertible debentures
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| Amount: | $1.75 million
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| Maturity: | Jan. 9, 2009
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| Coupon: | 10%
|
| Price: | Par
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| Yield: | 10%
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| Conversion price: | The lesser of $0.10 or a 5% discount to the lowest daily VWAP for the 30 consecutive trading days before conversion
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| Warrants: | For 7.15 million shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.07
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | Jan. 9
|
| Stock symbol: | OTCBB: ITUI
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| Stock price: | $0.08 at close Jan. 9
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