By Sheri Kasprzak
New York, July 6 - Teleplus World, Corp. sealed a $3 million private placement of secured convertible debentures.
Cornell Capital Partners, LP bought the three-year debentures, which have a 12% coupon.
The debentures are convertible into common shares at the lower of $0.035 each and 90% of the lowest volume weighted average price of the company's closing stock price for the 20 trading days immediately before conversion.
Cornell received warrants for 50 million shares, exercisable at $0.03 each; warrants for 30 million shares, exercisable at $0.05 each; and 4 million restricted shares.
Part of the proceeds will be used for the final balloon payment due to former shareholders of Telizon Inc. The rest will be used for working capital.
Teleplus, based in Miami, is a wireless and telecommunications service provider.
| Issuer: | Teleplus World, Corp.
|
| Issue: | Secured convertible debentures
|
| Amount: | $3 million
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | The lower of $0.035 and 90% of the VWAP for the 20 trading days immediately before conversion
|
| Warrants: | For 80 million shares
|
| Warrant strike price: | $0.03 for 50 million shares; $0.05 for 30 million shares
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | July 3
|
| Stock symbol: | OTCBB: TLPE
|
| Stock price: | $0.04 at close July 3
|
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