By Sheri Kasprzak
Atlanta, April 11 - Global National Communications Corp. said it will raise up to $7 million in a private placement of convertible debentures.
The debentures mature in 2008, bear interest at 8% annually and are convertible into common shares at $4.00 each.
If the company's stock is less than $5.00 per share on the 10th day after the registration statement is effective or the volume weighted average price is less than $5.00 for the 10 days before the registration statement is effective, the conversion price will be lowered to $3.50.
The investors will receive warrants for up to 100% of the shares issuable upon conversion. The warrants are exercisable at $4.50 each.
Duncan Capital LLC was the placement agent.
Based in Guangdong, China, Global National manufactures telecommunications devices, digital television parts, MP3 recorders, satellite receivers and motherboards.
| Issuer: | Global National Communications Corp.
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| Issue: | Convertible debentures
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| Amount: | $7 million
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| Maturity: | 2008
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | $4.00
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| Warrants: | For up to 100% of the shares issuable upon conversion
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| Warrant strike price: | $4.50
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| Placement agent: | Duncan Capital LLC
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| Pricing date: | April 7
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| Stock price: | $4.85 at close April 7
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