Smartlinx Acquires Funds Through Private Placement Offerings

By Mini Swamy

TMCnet Contributor

 

Smartlinx Inc. has announced that it has approved a private placement offering of up to 5 million units at a price of $0.40 per unit, with each unit consisting of one share of Smartlinx’s common stock and one share purchase warrant.

 

For every warrant the holder has, he is entitled to purchase an additional share of common stock at a price of $0.50 per share for a two-year period from the date of issuance. The foreign offering will not be admissible to persons of U.S. origin as defined in the Securities Act of q933.

 

Since commercial bankers’ loan criteria and institutional venture capitalists’ investment criteria are tightening, the private placement offering remains one of the most viable capital formation alternatives available for such companies.

 

The private placement offering has the basic advantage of reducing overall costs because it is exempted from certain registration and reporting requirements. As it is offered only to a small number of investors, the transactions are more structured and confidential.

 

Under the Foreign Offering, Smartlinx may pay a commission or finder’s fee to duly licensed brokers and investment dealers of up to 10 percent of the cash proceeds of the offering and issue warrants to purchase up to 10 percent of the number of Units sold in the offering on the same terms as the placed warrants.

 

Smartlinx intends to use the proceeds of the Foreign Offering to implement its plan of operation and for general working capital purposes. There is no assurance that the Foreign Offering or any part of it will be completed.

 

Smartlinx Inc. offers online educational and Voice over Internet Telephony (News - Alert) (VoIP) monitoring services.

 

Smartlinx has partnered with Bharat Sanchar Nigam Limited, the largest telecommunications company in India, to provide online learning services to K-12 students, higher education students and working professionals using VoIP connect between the tutor/teacher and the student under the service named ‘Live Tutor.’