Business
IP Applications Closes Financing
IP Applications Closes Financing.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Dec. 20 /CNW/ - IP Applications Corp. (TSX-Venture: IPX), a\nleading IP solutions provider, today announced that it has closed the non-\nbrokered private placement previously announced on November 29, 2005 with\nPender Financial Group Corporation and Pender Growth Fund (VCC) Inc.\n(together, the \"Investors\") raising gross proceeds of $500,000 of which\n$375,000 was raised from Growth Fund (VCC) Inc. and the balance from Pender\nFinancial Group Corporation.\nThe securities issued consist of convertible secured debentures due in 18\nmonths on June 19, 2007 with an interest rate of 12% per annum calculated and\npaid quarterly in cash. Should the Company complete a financing in excess of\n$1.5 million before February 28th, 2006 (\"Qualifying Financing\"), each\nInvestor will have the right to either a) convert their debentures on the same\nterms and conditions as the Qualifying Financing; or b) have their debentures\nredeemed in full by the Company.\nIf a Qualifying Financing does not occur, each Investor may convert its\ndebentures into units at $0.40 with each unit consisting of one common share\nand one-half share purchase warrant with each full warrant exercisable into\ncommon shares at a price of $0.50 for a period of 12 months from issuance and\nat a price of $0.55 for the period 13-24 months from issuance.\nFurther, each Investor will be issued 2.5 bridge warrants for every $1 of\ndebenture purchased. Each whole bridge warrant will entitle the holder to\npurchase one common share at a price of $0.50 for a period of 12 months from\nclosing and at a price of $0.55 for the period 13-24 months from closing. The\nmaximum number of warrants issued pursuant to the transaction shall not exceed\n1,875,000 warrants.\nThe securities issued pursuant to the private placement are subject to a\n4 month hold period expiring on April 20, 2006. In the event that IP\nApplications Corp. completes the Qualifying Financing and the Investors choose\nto convert their debentures on the same terms and conditions as the Qualifying\nFinancing, the securities issued to the Investors pursuant to the Qualifying\nFinancing will be subject to a 4 month hold period commencing on the date the\nsecurities are distributed to the Investors.\nThe net proceeds from the private placement will be used for operating\nworking capital.\n\nAbout IP...