NHC Communications postpones $2.5 million private placement

By Sheri Kasprzak

New York, July 20 - NHC Communications Inc. said it is putting off its previously announced $2.5 million private placement for now.

The investor in the offering has required that NHC seek additional funding as a condition of the closing.

The company had planned to sell convertible debentures.

The debentures were to pay interest at Prime rate plus 200 basis points, mature in two years and convert into common shares at the lower of C$0.55 each, the volume-weighted average stock price for 10 trading days before conversion or the price on the day before the transaction closes.

The investor was also to receive warrants for half of the shares issuable upon conversion, exercisable at C$0.69 each for five years.

In other news, NHC was notified that one of its Japanese manufacturers intends to abandon production of NHC's robotic matrices.

Based in Montreal, NHC provides automated main distribution frames and cross-connect equipment for copper-based telecommunications.

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