By Sheri Kasprzak
New York, June 14 - RoomLinX, Inc. pocketed $2.25 million from convertible debentures in an ongoing offering for up to $3.5 million.
The 6% debentures are due May 2012 and are initially only convertible into series B preferred stock.
The preferreds are not convertible into common shares until the company has sufficient shares to cover the conversion. The ultimate conversion price into common shares is $0.02 each.
Also, RoomLinX reached agreements with its debt holders to repay and cancel all prior existing debt, other than bank debt, at a 50% discount to the outstanding principal amount of the debt. The total outstanding principal amount before the cancellation was $1.4 million.
Denver-based RoomLinX provides wireless and wired internet solutions to the hospitality industry.
| Issuer: | RoomLinX, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $2.25 million
|
| Maturity: | May 2012
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.02 into common shares; initially only convertible into series B preferred stock
|
| Warrants: | No
|
| Settlement date: | June 13
|
| Stock symbol: | Pink Sheets: RMLX
|
| Stock price: | $0.028 at close June 13
|
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