By Sheri Kasprzak
Atlanta, Jan. 18 - Return on Investment Corp. revealed additional details about its previously announced $5.5 million private placement.
The company sold a $4 million secured convertible term note and a $1.5 million secured revolving note to Laurus Master Fund Ltd.
The three-year notes bear interest at the greater of 7% or the Prime rate plus 300 basis points and are convertible into common shares at $2.11 each.
Laurus also received warrants for 750,000 shares at $2.36 each through Jan. 29, 2012.
The company used $1.9 million of the proceeds to repay an accounts receivable agreement between the company, its subsidiary GO Software Inc. and Silicon Valley Bank.
About $2.3 million of the proceeds were used to repay individual and institutional investors of a second secured convertible promissory note due Feb. 1, 2005.
Based in Kennesaw, Ga., Return on Investment is a holding company for a software-distributing company and a construction information company. The proceeds not used to repay debt will be used for working capital.
| Issuer: | Return on Investment Corp.
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| Issue: | Secured convertible term note and secured revolving note
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| Amount: | $4 million (term note); $1.5 million (revolving note)
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| Maturity: | Three years
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| Coupon: | Greater of 7% or Prime rate plus 300 basis points
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| Conversion price: | $2.11
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| Warrants: | For 750,000 shares
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| Warrant expiration: | Jan. 29, 2012
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| Warrant strike price: | $2.36
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| Investor: | Laurus Master Fund Ltd.
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| Settlement date: | Jan. 11
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| Stock price: | $2.00 at close Jan. 11
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