By Sheri Kasprzak
New York, March 14 - Rapid Link Inc. provided details on its previously closed $1 million private placement of two convertible debentures.
The company issued the 10% debentures to Trident Growth Fund, LP and Charger Investments, LLC. Trident purchased a $600,000 debenture and Charger a $400,000 debenture.
The debentures, due March 8, 2007, are convertible into shares at $0.30 each. If the debentures are not repaid in full by Sept. 7, the conversion price will drop to $0.14.
Trident received warrants for 600,000 shares exercisable at $0.14 each and 600,000 warrants exercisable at $0.25 each. Charger received warrants for 400,000 shares, exercisable at $0.14 each and 400,000 shares, exercisable at $0.25 each. The warrants expire in five years.
Los Angeles-based Rapid Link is a voice over internet protocol provider.
| Issuer: | Rapid Link Inc.
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| Issue: | Convertible debentures
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| Amount: | $1 million
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| Maturity: | March 8, 2007
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| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
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| Conversion price: | $0.30
|
| Warrants: | For 2 million shares
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| Warrant expiration: | Five years
|
| Warrant strike price: | $0.14 for half; $0.25 for half
|
| Investors: | Trident Growth Fund, LP, Charger Investments, LLC
|
| Settlement date: | March 8
|
| Stock symbol: | OTCBB: RPID
|
| Stock price: | $0.25 at close March 8
|
| Stock price: | $0.17 at close March 14
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