InterMetro Communications Inc. (OTCPK:IMTO) announced a private placement of 295,000 shares of series A2 preferred stock at $1 per share for gross proceeds of $295,000 on October 12, 2012. The company also issued warrants to purchase 295,000 shares of common stock at an exercise price of $0.20 per share for a period of five years. The preferred stock may be converted into shares of common stock at a conversion rate of 6.66 shares of common stock for each share of series A2 preferred. The fractional shares of common stock will not be issued and upon a conversion will be rounded down to the nearest whole number. The company may redeem all or any portion of the preferred stock at any time after December 31, 2013, to the extent that the preferred stock has not otherwise been redeemed or converted, by paying cash equal to the liquidation preference. The securities were issued pursuant to Regulation D. The company accepted minimum investment of $25,000 from any outside investor. The company may raise up to $1,000,000 in gross proceeds in the transaction.

On October 12, 2012, InterMetro Communications Inc. closed the transaction.