By Sheri Kasprzak
New York, Sept. 6 - Innofone.com, Inc. said it has wrapped a $4.5 million private placement of convertible notes.
The 8% secured convertible term notes due Aug. 31, 2008, were sold to AJW Partners, LLC; AJW Offshore, Ltd.; AJW Qualified Partners and New Millennium Capital Partners II, LLC.
Innofone will receive $1.5 million at closing and will receive $1.5 million once a registration statement is filed and the remainder once the registration statement is effective.
If the company's stock trades above $3.50 in any month, no interest will be due on the notes for the month.
The notes are convertible into common shares at the lesser of $3.50 or a 30% discount to the average of the three lowest trading prices during the 20 trading days before conversion.
The investors received warrants for a total of 1 million shares, exercisable at $5.00 each for five years.
The proceeds will be used for working capital.
Based in Olney, Md., Innofone.com is an internet protocol portal provider.
| Issuer: | Innofone.com, Inc.
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| Issue: | Secured convertible term notes
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| Amount: | $4.5 million
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| Maturity: | Aug. 31, 2008
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | The lesser of $3.50 or a 30% discount to the average of the three lowest trading prices during the 20 trading days before conversion
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| Warrants: | For 1 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $5.00
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| Investors: | AJW Partners, LLC; AJW Offshore, Ltd.; AJW Qualified Partners and New Millennium Capital Partners II, LLC
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| Settlement date: | Aug. 31
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| Announcement date: | Sept. 6
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| Stock price: | $2.00 at close Aug. 31
|
| Stock price: | $1.80 at close Sept. 6
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