VoIP to issue stock to settle breach-of-contract suit

By Sheri Kasprzak

New York, June 1 - VoIP, Inc. said it will issue shares to settle a breach-of-contract lawsuit filed against it by Cross Country Capital Partners, LP.

VoIP will issue 12.5 million shares to Cross Country.

The suit revolved around $8,318,284 in discounted convertible notes issued in January 2006.

In September 2006, the company settled similar claims brought against it by Alpha Capital AG; Bristol Investment Fund, Ltd.; Whalehaven Capital Fund Ltd.; Ellis International, Ltd.; Platinum Long Term Growth II, Inc.; Chestnut Ridge Partners, LP; Grushko & Mittman, PC; CMS Capital; DKR Soundshore Oasis Holding Fund, Ltd.; and OsherCapital, Inc.

In the settlement with those investors, the company issued 19 million shares when the investors surrendered $4.94 million in notes.

VoIP reset the amount due under the notes to $8,318,284 with interest of $207,957.09 and liquidated damages equal to $374,322.77.

The notes were issued in principal of $5,331,212 for proceeds of $4.685 million in January of 2006.

Cross Country held 2.225 million warrants from the offering with strike prices ranging from $1.37 to $1.60 each. The strike prices were subsequently reduced to $0.18.

Based in Fort Lauderdale, Fla., VoIP is a voice-over-internet protocol provider.

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