CounterPath Announces Sale of Convertible Debentures
24 November 2005 - 7:05AM
PR Newswire (US)
VANCOUVER, Nov. 23 /PRNewswire-FirstCall/ -- CounterPath Solutions,
Inc. (OTCBB: CTPS), a provider of VoIP (Voice over Internet
Protocol), Video over IP, Instant Messaging (IM), and Presence SIP
softphones, today announced it has completed the sale of
convertible debentures in the aggregate principal amount of $2
million. The convertible debentures are senior unsecured
obligations of the Company at an interest rate of 5% per annum,
payable on maturity or as otherwise agreed to by the Company and
the investor, and will mature on November 21, 2007. At the option
of the investor, the debentures may be converted into shares of the
Company's common stock at a conversion price of $0.40 per share.
The Company has the option to prepay any outstanding principal and
accrued interest under the debentures with the consent of the
investor. Under the terms of the private placement, the investor
also acquired warrants for the purchase of up to 2,500,000 shares
of the Company's common stock, exercisable for two years at a price
of $0.80 per share. The Company will not be granting any
registration rights or paying any finder's fees in connection with
this private placement. The proceeds of the offering will be used
to (1) expand the development and marketing of our core products,
(2) develop additional products, and (3) for general corporate
purposes. The securities to be issued in this private placement
have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements of the Securities Act of 1933. For more information,
please contact: Todd Hanas Tiffany Zinck Investor Relations Media
Relations +1.866.869.8072 +1.604.320.3344 extension 208
pr@counterpath DATASOURCE: CounterPath Solutions Inc. CONTACT: Todd
Hanas, Investor Relations, 1-866-869-8072, ; Tiffany Zinck, Media
Relations, (604) 320-3344 extension 208, pr@counterpath
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