By Sheri Kasprzak
New York, April 11 - NetWorth Technologies, Inc. said it completed a private placement of convertible debentures for $1 million.
The 8% debentures were purchased by Cornell Capital Partners, LP.
The debentures mature April 4, 2008 and are convertible into shares at the lesser of $0.005 (or the market price following the completion of the company's 150-for-1 reverse stock split) or 80% of the lowest closing bid price for the 30 trading days before conversion.
The debentures may be redeemed at a 20% premium to the amount being redeemed plus interest.
Separately, NetWorth terminated its standby equity distribution agreement with Cornell from December.
Located in Fort Lauderdale, Fla., NetWorth is an internet technology company focused on network management, security, municipal agencies and federal agencies.
| Issuer: | NetWorth Technologies, Inc.
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| Issue: | Convertible debentures
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| Amount: | $1 million
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| Maturity: | April 4, 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 $0.005 each or 80% of the lowest closing bid price for the 30 trading days before conversion
|
| Call: | 20% premium to the amount being redeemed plus interest
|
| Warrants: | No
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | April 4
|
| Stock symbol: | OTCBB: NWRT
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| Stock price: | $0.003 at close April 4
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