IPtimize, Inc. announced the closing of a bridge loan agreement, taken effect as of today, which was with a group of non-affiliated lenders. The company borrowed an aggregate of $1,650,000 to fund its offering of broadband voice and data services to the cable TV industry. The loan was represented by a nine-month promissory note bearing interest at the rate of 12.99% per annum and convertible into shares of the company’s common stock at $0.45 per share.
Through the Bridge Loan Agreement, IPtimize gained the right to prepay the loan amount on 45 days prior written notice at any time after the closing bid price. This also consisted of the company’s common stock having 20 consecutive trading days at $1.35 or greater, and the minimum average daily trading volume of 50,000 shares. As additional consideration, the Bridge Loan Agreement provided that the Note holders were to collectively be issued five-year warrants to purchase an aggregate of 1,833,333 restricted (i.e., unregistered) shares of the Company’s Common Stock at $0.45 per share (the “Warrant Shares”). IPtimize agreed to register the Warrant Shares in the first Registration Statement filed by it under the Securities Act of 1933, as amended.
IPtimize, Inc. offers hosted voice over Internet protocol services (VoIP) and provides broadband voice and data services throughout the United States. The company’s VoicePilot, a hosted VoIP service, allows customers to transfer voice traffic onto existing network data. Using a telephone line replacement service called VoIP Connect, businesses can put voice traffic onto an already existing broadband Internet connection. The company offers consulting services that pertain to information technology, managed firewall, and single or multi-service provider networks and equipment.
Let us hear your thoughts below:
