Roomlinx converts $1.87 million of debt; company virtually debt-free

By Devika Patel

Knoxville, Tenn., Sept. 16 - Roomlinx, Inc. finalized a $1.87 million debt conversion into common stock on Sept. 9, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The conversion eliminates all of Roomlinx' convertible debt.

Under the agreement, all $1.87 million of the company's outstanding debentures were converted into 93.49 million shares at a conversion price of $0.02 per share.

With the exception of roughly $370,000 in long-term debt, the company is now debt-free.

"We view this as a strong vote of confidence from our investors, which now view Roomlinx as an equity investment," Roomlinx chief executive officer Mike Wasik said in a press release.

"With an improved balance sheet and reduced interest expense going forward, we believe that this transaction will provide us with additional financial flexibility to build our business and improve our value for all shareholders."

Denver-based Roomlinx provides wireless and wired internet services to the hospitality industry.

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