Farmstead Telephone Group, Inc. Completes $3 Million Financing with Laurus Funds
04 April 2005 - 3:45PM
PR Newswire (US)
Farmstead Telephone Group, Inc. Completes $3 Million Financing with
Laurus Funds EAST HARTFORD, Conn., April 4 /PRNewswire-FirstCall/
-- Farmstead Telephone Group, Inc. (AMEX:FTG) announced that it has
completed a new three-year, $3 million credit facility with Laurus
Master Fund, Ltd, a New York-based institutional fund that
specializes in direct investments in small cap companies. The
facility consists of a $2.5 million convertible secured revolving
note and a $500,000 convertible minimum borrowing note. The
outstanding balance on the notes are convertible into shares of the
Company's common stock, subject to certain limitations set forth in
the agreement based upon the stock's trading volume and Laurus'
ownership position. The Company also issued to Laurus a five-year
warrant to purchase up to 500,000 shares of common stock of the
Company. Borrowings under the revolving note will be based upon a
percentage of eligible accounts receivable and inventories as
defined in the agreement. This new credit facility replaces the
$1.7 million revolving credit facility the Company had with
Business Alliance Capital Corporation. Jean-Marc Stiegemeier,
Farmstead's President and CEO commented, "We are excited to have
entered into this relationship with Laurus Funds. This facility
gives us an immediate uplift in our current borrowing availability
and will provide us with enhanced financial flexibility to continue
the execution of our 2005 plan." About Farmstead Farmstead
Telephone Group, Inc. is an Avaya Inc. Gold Business Partner,
selling, installing and maintaining both new and refurbished Avaya
business communications products nationwide. Further information
about Farmstead Telephone may be found at
http://www.farmstead.com/. We are interested in your feedback and
comments. To respond to questions from our management team, click
here:
http://www.b2i.us/sendFeedBack.asp?B=1042&RL=7853&S=12204
To add yourself to our email distribution list, click here:
http://www.b2i.us/frame.asp?BzID=1042&to=ea&Nav=1&S=0&L=1
This release contains forward-looking statements that involve risks
and uncertainties. In addition to historical information, investors
should consider carefully the risks associated with an investment
in the Company's securities as previously outlined by the Company
in its prior filings with the Securities and Exchange Commission.
DATASOURCE: Farmstead Telephone Group, Inc. CONTACT: Robert G.
LaVigne, CFO of Farmstead Telephone Group, Inc., +1-860-610-6002,
or fax: +1-860-610-6001 Web site: http://www.farmstead.com/
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