Pervasip Announces Cancellation of All Warrants Held by Its Lender
WHITE PLAINS, N.Y., Dec. 28, 2010 /PRNewswire via COMTEX/ -- Pervasip Corp. (OTC Bulletin Board: PVSP), a provider of Voice over Internet Protocol (VoIP) telephone services, today announced that all of the 15,905,257 warrants held by its lender have been cancelled. The lender has agreed to cancel 25 million warrants for each $50,000 of equity injected by an investor group until all warrants are cancelled upon the receipt of $300,000 in total. The company received a total of $327,700 in new equity, and consequently, the company's lender has sent written notification that all its warrants have been cancelled.
Paul Riss, Pervasip's Chief Executive Officer, stated that "We appreciate the support of our lender and our investors who helped us reduce the total number of fully-diluted shares in the company and increase shareholder value. Now that the warrants have been eliminated, we are focusing on a debt settlement agreement that we have been working on with our lender. We are satisfied with the terms of the preliminary agreement, and we hope to finalize an agreement soon."
Item 3.02. Unregistered Sales of Equity Securities.
On November 30, 2010, Pervasip Corp. (the “Company”) issued 500,000 shares of its common stock, par value $0.10 per share (“Common Stock”), and a 10-year warrant to acquire 1,000,000 shares of its Common Stock at $0.10 per share to Mark Richards, the Company’s Chief Information Officer, in exchange for $50,000 in salary. The Company also issued to Paul H. Riss, the Company’s Chief Executive Officer, and an affiliated trust, an aggregate of 800,000 shares of its Common Stock plus 10-year warrants to acquire 1,600,000 shares of its Common Stock at $0.10 per share in conjunction with a private placement of stock and warrants. The Company received $80,000 from this private placement.
The shares issued pursuant to the offering were not registered under the Securities Act of 1933, as amended, or any state securities laws due to exemptions from registration under the Securities Act pursuant to Section 4(2) and Rule 506 of Regulation D. The shares of Common Stock may not be transferred unless exemptions from the registration requirements of the Securities Act and applicable state laws are available.
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