Sequiam closes $3.45 million private placement of secured note

By Sheri Kasprzak

Atlanta, May 20 - Sequiam Corp. said it has raised $3.45 million in a private placement of a secured note from insiders of the company.

The note matures in two years and is not convertible into common shares.

The interest rate of the offering could not be determined by press time Friday.

The investors also received warrants for 6 million shares, exercisable at prices ranging from $0.20 to $0.30 each.

The company plans to use $1.35 million of the offering to pay down existing debt and $1.1 million for working capital. A total of $1 million will be used to pay off a note held by Laurus Master Fund, Ltd.

Laurus also received 5.5 million shares and a warrant for 1.5 million shares, exercisable at $0.23 each. Those shares and warrants were issued to complete liquidation of Sequiam's obligation to Laurus.

Based in Orlando, Fla., Sequiam develops software and hardware that allows users to acquire and manage information over the internet in a secure environment.

On Friday, Sequiam's stock closed down $0.035 at $0.155.

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