By Sheri Kasprzak
Atlanta, Nov. 22 - RoomLinX Inc. said Monday it has received $5 million in an equity line of credit.
The company received the standby equity distribution agreement from Cornell Capital Partners LP.
The deal, which was completed Nov. 19, provides that RoomLinX may draw upon the financing in $250,000 tranches over two years. RoomLinX issued 1.1 million common shares to Cornell in the deal, as well as $10,000 as a commitment fee.
Cornell will pay 98% of the lowest closing bid price on the over-the-counter bulletin board for five days following the notice date.
Newbridge Securities Corp. was placement agent in the deal and received 66,667 common shares as its fee.
Based in Hackensack, N.J., RoomLinX is a high-speed, wireless internet provider. The company plans to use the proceeds from the financing for debt repayment and working capital.
| Issuer: | RoomLinX Inc.
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| Issue: | Standby equity distribution agreement
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| Amount: | $5 million
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| Tenor: | Two years
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| Price: | 98% of the lowest closing price for five trading days
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| Warrants: | No
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| Placement agent: | Newbridge Securities Corp.
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| Investor: | Cornell Capital Partners LP
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| Pricing date: | Nov. 19
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| Stock price: | $0.145 at close Nov. 19
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