ERF Wireless, Inc. announced that it has received $0.15 million in funding from Adar Bays LLC and Union Capital, LLC.
November 24, 2014 at 11:00 pm EST
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ERF Wireless, Inc. (OTCBB:ERFB) announced that it has entered into a securities purchase agreement for the private placement of two twelve-month unsecured convertible promissory notes for gross proceeds of $100,000 on August 4, 2014. The securities will be issued to Union capital LLC for gross proceeds of $50,000 and Adar Bays LLC for gross proceeds of $50,000. The note carries an interest at a rate of 10% per annum and will mature on August 15, 2015. The company will pay principal and interest due on the notes before or on the maturity date. The holder of the note may require the company to convert the outstanding principal balance into shares of common stock without a legend at any time after 180 days following the date of these notes. The common stock issued will be valued using a conversion factor of 55% multiplied by the lowest daily closing bid price for the 15 trading days prior to the conversion date. The securities were issued pursuant to exemption provided under Regulation D.
On November 25, 2014, ERF Wireless, Inc. closed the transaction. The company raised an additional $50,000 in an eight-month back-end note from Union capital LLC. The company has raised $150,000 in financing in the transaction. The company has terminated $50,000 with Adar Bays, LLC.
ERF Wireless, Inc. is a critical infrastructure communications service company, primarily operating in the enterprise vertical market sector of North American rural broadband. The Company provides wireless and other communications products and services to a spectrum of customers in underserved rural and suburban areas. The Company operates through four divisions: Energy Broadband, Enterprise Network Services Division (ENS), Wireless Bundled Services (WBS) Division and Network Operations Division. The Company provides broadband services, as well as basic communications services to residential, commercial, oil and gas, banking, healthcare and educational customers in those areas that are unable to receive such services. The Company is a solutions provider to other enterprise customers, providing them with a range of communications services, including high-speed broadband, and Voice over Internet Protocol (VoIP) telephone and facsimile service.