PowerLinx, Inc. Enters Into a $4.375 Million Financing Agreement 3/16/2006
ST. PETERSBURG, Fla., Mar 16, 2006 (BUSINESS WIRE) -- PowerLinx, Inc. (OTCBB:PWLX), a developer, manufacturer, and seller of powerline communication products today announced that it has entered into a $4.375M financing agreement in the form of convertible debentures, from various accredited and institutional investors. The financing includes $3.0M in new funding and the conversion of up to $1.375M of existing debt into the convertible debentures. The 8% debentures have a two year term and are convertible into common stock at a fixed price equivalent to a 35% discount to the 10 day VWAP ending March 6, 2006, subject to adjustment, and includes warrants exercisable into an aggregate of 180.77M shares, priced at 125% of the 10 VWAP ending March 6, 2006, also subject to adjustment.
Mike Tomlinson, Chief Executive Officer stated, "We are extremely pleased that our leading institutional investor has increased its investment in the Company and has also facilitated the participation of several other institutional investors; significantly increasing the Company's institutional shareholder base. In addition, this new financing will now allow the Company's management to focus entirely upon the implementation of its business plan; including the completion, marketing, and sales of its new products scheduled for release during the 3rd and 4th quarters of this fiscal year ending December 31, 2006."
About PowerLinx, Inc.: PowerLinx, Inc., http://www.power-linx.com, develops, manufactures, and markets products and applications that transmit voice, video, audio and data either individually or in any and all combinations over power lines, twisted-pair wires and coax in AC and DC power environments, on any and all power grids. The Company has also developed, manufactured, and marketed different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.
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