From recent placement:
FORT LAUDERDALE, Fla.--(Business Wire)--May 10, 2005--
GlobeTel Communications Corp. (OTCBB:GTEL), today announced that it has raised an initial $2.358 million in investment from a group of accredited investors.
GlobeTel announced today that it has accepted Subscription Agreements by certain large institutional investors and other accredited investors. The funds will be used for general corporate purposes and will allow the company to further accelerate its operational growth objectives.
Timothy Huff, CEO of GlobeTel stated: "This is a very positive event for us. This investment was raised on a straight Common Stock purchase with a very small discount to the investors, which was based on the previous five days VWAP share price. We also provided warrants to the investors to purchase up to 70% of their initial investment, at a price of 150% of the market price of our shares, which based on yesterday's close equals approximately .3838 per share. Assuming the exercise of the warrants, the total investment could be as much as $5.65 million."
I like that part. OK...we'll give you a discount on the current purchase but you're going to have to pay a premium if you want more. Of course, the warrants are sort of like an "option" for future consideration and might actually become a vehicle for a significant discount when the market price is appreciably higher. Given the impending "split", I assume the cost of exercising each warrant would be $5.76, post split. Let's hope they get their chance to exercise them. :):)
