By Sheri Kasprzak
New York, July 11 - NetFabric Holdings, Inc. said it has secured a $10 million equity line and a $1 million convertible debenture financing from Cornell Capital Partners, LP.
Under the terms of the standby equity distribution agreement, NetFabric may sell shares to Cornell at 98% of the lowest volume weighted average price for five trading days after the notice of a draw.
Cornell will retain 5% of each draw.
There is a $750,000 per week limit to each advance.
The debenture matures July 1, 2006 and is convertible into common shares at $1.40 each.
The proceeds from both facilities will be used to expand the company's sales operations of voice over internet protocol services.
NetFabric is based in Danbury, Conn.
| Issuer: | NetFabric Holdings, Inc.
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| Issue: | Standby equity distribution agreement
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| Amount: | $10 million
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| Price: | 98% of the lowest volume weighted average price for five trading days after notice of a draw
|
| Warrants: | No
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | July 11
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| Stock price: | $1.43 at close July 11
|
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| Issuer: | NetFabric Holdings, Inc.
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| Issue: | Convertible debenture
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| Amount: | $1 million
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| Maturity: | July 1, 2006
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| Conversion price: | $1.40
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| Warrants: | No
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | July 11
|
| Stock price: | $1.43 at close July 11
|
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