Ramp defaults on $4.95 million in convertible debentures

By Sheri Kasprzak

Atlanta, June 2 - Ramp Corp. has defaulted on $4.95 million in convertible debentures, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Ramp was in default on the 8% convertible debentures it issued to Platinum Partners LP, Harborview Master Fund LP and Briarwood Investments Inc. on Jan. 12, according to the filing.

The company failed to file a quarterly report on form 10-Q for the quarter ended March 31, and that, according to the filing, constitutes a default.

The investors, according to the 8-K, have all contacted Ramp demanding payments or prepayments under the convertible debentures, which had a face value of $4 million.

Ramp could have its stock listing removed from the American Stock Exchange. Ramp had until the end of Thursday to submit a plan for correction in order to be in compliance with AMEX's rules for listing. In order to avoid having its stock listing removed, Ramp must be in compliance by July 11.

AMEX has also requested information and documentation related to the resignation of its independent auditor and the resignation of Andrew Brown, the company's chairman, president and chief executive officer. AMEX said in the 8-K that it plans to investigate certain actions taken by Brown, but additional details about those actions could not be determined by press time Thursday.

Ramp, based in New York, develops and markets software for long-term care facilities and other healthcare providers.

On Thursday, the company's stock closed unchanged at $1.25.

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