netTALK is a publicly-traded Competitive Local Exchange Carrier (CLEC) that is occupied in the sale of products and connectivity network phone service for using Voice over Internet Protocol (VoIP). The company has announced that it has entered into a Security Purchase Agreement with its main institutional investor, implementing a $5,266,130 Senior Debenture, cancelling and replacing the company’s present demand notes and accumulated interest with the investor. According to the terms of the agreement, for value received, the investor also acquired 5-year warrants to subscribe to and purchase from netTALK up to 22,064,520 shares of common stock of netTALK. There was no involvement of any placement agent in this refinancing that was reported effective June 30, 2011.
In a release, the President and CEO of netTALK, Anastasios ‘Takis’ Kyriakides said that "We are pleased that our key investor continues to enthusiastically support our growth as a company. This group has provided $5 million of fresh capital for our marketing and expansion thus far this year, and has converted their existing debt, resulting in a dramatic strengthening of our balance sheet and simplification of our capital structure."
Also effective June 30, 2011, the holder of the company’s previously outstanding convertible debentures have chosen to change those debentures into shares of common stock pursuant to the terms thereof.
netTALK’s equity capital structure thus consists of 37 million common shares outstanding and 20 million common share equivalents of convertible preferred equity shares, as a result of these transactions. The company has no convertible debt outstanding.
netTALK is engaged in designing, distributing and sale of products and low-cost VoIP services. It’s DUO and other products offer free calls to any phone in Canada and the U.S. from anywhere in the world. Besides at netTALK’s website, the netTALK DUO is available at WalMart.com, Amazon.com, Dell.com, Buy.com, NewEgg.com, and PC Richard & Sons. It is also available in Canada at Amazon.ca and Dell.ca. Distribution deals.