Business
IP Applications Announces Bridge Financing
IP Applications Announces Bridge Financing.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Sept. 26 /CNW/ - IP Applications Corp. (TSX-Venture: IPX)\ntoday announced that the Pender Group has advanced a $411,144 bridge loan to\nthe Company to provide it with additional working capital to continue to\ndevelop its business. It is anticipated that the loan will be converted into\nequity at the time of an equity offering to be undertaken by the Company when\ncapital markets strengthen.\nJohn Jacobson, President & CEO of IP Applications, said \"The Company is\nnearly through the reorganization that began a year ago and until it is\ncomplete and the new strategic direction is generating visible results, we do\nnot want to pursue an equity offering. As we've already reported, we've\neliminated the payables overhang from 2005 and dealt with a number of one-time\nevents that arose earlier this year. We needed a modest amount of money for\nworking capital and the Pender Group, who understand the progress that we have\nmade, were the logical people to help us along.\"\nKelly Edmison, President & CEO of the Pender Financial Group, said, \"IP\nApplications is doing a great job transforming its business and operations are\nprogressing towards cash-flow breakeven. This is the first new money invested\ninto the company since the $500,000 debenture offering almost one year ago.\"\nPender Financial Group Corporation and Pender Growth Fund (VCC) Inc.\n(collectively, the \"Investors\") advanced cash proceeds of $411,144 of which\n$317,960 was loaned by Pender Growth Fund (VCC) and the balance by Pender\nFinancial Group Corp.\nThe loans will be secured by new convertible secured debentures due 18\nmonths from the date of issue, with an interest rate of 12% per annum\ncalculated and paid quarterly in cash. At the holders' option, the Investors\nmay convert the principal amounts (or portions thereof) into units consisting\nof one common share and one-sixth common share purchase warrant anytime after\nApril 1, 2007. The conversion price is at the lesser of: a) market price at\nthe time of conversion (not less than $0.25); b) the price of the Qualifying\nFinancing; or c) $0.40. Each full warrant is exercisable into one common share\nat a price of $0.50 for a period of 12 months from issuance and at a price of\n$0.55 for the period 13-24 months from issuance. Should the Company complete a\nfinancing in excess of ne...