By Devika Patel
Knoxville, Tenn., July 18 - Rapid Link, Inc. took in $1.5 million from a private placement of a note on July 14, according to an 8-K filed Friday with the Securities and Exchange Commission.
Valens U.S. SPV I and Valens Offshore SPV II Corp. were the investors.
The $1.5 million 10% secured term B note matures on March 31, 2011. Interest is payable monthly. Amortizing principal payments of $85,000 per month, plus interest and fees will begin on Oct. 1, 2009.
The investors also received a warrant for a number of common shares equal to 25% of the note's principal, divided by the then current share price. The warrant is exercisable at $0.01 per share.
As part of the financing, the investors agreed to lend the company up to $1.2 million, evidenced by secured revolving notes, from time to time.
Los Angeles-based Rapid Link is a voice over internet protocol provider.
| Issuer: | Rapid Link, Inc.
|
| Issue: | Secured term B note
|
| Amount: | $1.5 million
|
| Maturity: | March 31, 2011
|
| Coupon: | 10%
|
| Price: | Par
|
| Warrants: | For a number of shares equal to 25% of the term B note's principal, divided by the then current share price
|
| Warrant strike price: | $0.01
|
| Investors: | Valens U.S. SPV I and Valens Offshore SPV II Corp.
|
| Settlement date: | July 14
|
| Stock symbol: | OTCBB: RPID
|
| Stock price: | $0.08 at close July 14
|
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