REDWOOD SHORES, Calif., June 6 /PRNewswire-FirstCall/ -- Communication Intelligence Corporation (the "Company") (OTC Bulletin Board: CICI), a leading supplier of electronic signature solutions for business process automation in the financial industry and the recognized leader in biometric signature verification, announced today that it has closed a financing, on June 5, 2008, led by Phoenix Venture Fund LLC (the "Investor").
As part of the financing, the Company borrowed a total of $3,637,500 million (the "Loan") from the Investor, which is a major shareholder of the Company, and two individuals (the "Additional Lenders"). The Company received net proceeds of $2,675,000 after financing related expenses of $325,000 and refinancing $600,000 of debt previously issued to the Additional Lenders, as well as an additional $37,500 in accrued and unpaid interest on such $600,000 through May 31, 2008 at 15% per annum. The Loan, which is secured by the assets of the Company and its subsidiary, CIC Acquisition Corp., bears interest at 8% per annum, payable quarterly in arrears in cash or in kind at the Company's option, and matures June 5, 2010. The Company also issued to the Investor and the Additional Lenders warrants to purchase 25,982,143 shares of the Company's common stock, which are exercisable at $0.14 per share at any time after the Company secures approval from its stockholders to increase the number of authorized shares of common stock (which approval is expected to be secured at the Company's upcoming annual meeting of stockholders to be held on June 30, 2008), until June 30, 2011.
Contemporaneously with the closing of the Loan, the Company also issued
1,040,000 shares of Convertible Preferred Stock (the "Preferred Shares") in
exchange for the cancellation of $995,000 of existing debt, as well as an
additional $45,000 in accrued and unpaid interest thereon, held by several
lenders, including one of the Additional Lenders and several entities
|SOURCE Communication Intelligence Corporation|
Copyright©2008 PR Newswire.
All rights reserved