Nov, 2003 : Frontline Secures Financing for $500,000
📅 - Frontline Communications (fcc.net), a provider of Internet access and Web hosting services, said today that it has closed an equity financing with Scarborough, Ltd. for $500,000 and granted it the option to finance an additional $500,000 in the next 45 days. The company said it also restructured the balance of a $550,000 bridge loan with IIG Equity Opportunities Fund, Ltd.
According to Frontline, $100,000 of the Scarborough financing was used to partially repay the IIG bridge loan. The balance of the financing proceeds will go towards the purchase of inventory by the company's Provo division and for operating expenses, the company said.
The Provo division, a Mexico-based cellular phone airtime provdier, was acquired by Frontline in April this year.
"The completion of this piece of our overall financing plan allowed us to restructure and extend the IIG bridge loan in anticipation of our next round of funding, which we hope to conclude before year end," said Stephen J. Cole-Hatchard, CEO of Frontline. "This money will also assist us in continuing the execution of our business plan, including the growth of our calling card distribution division, and the launch of our new payroll and cash card product lines. We are continuing our efforts to restructure most of our remaining debt, and hope to announce similar successful results soon."
According to Frontline, $100,000 of the Scarborough financing was used to partially repay the IIG bridge loan. The balance of the financing proceeds will go towards the purchase of inventory by the company's Provo division and for operating expenses, the company said.
The Provo division, a Mexico-based cellular phone airtime provdier, was acquired by Frontline in April this year.
"The completion of this piece of our overall financing plan allowed us to restructure and extend the IIG bridge loan in anticipation of our next round of funding, which we hope to conclude before year end," said Stephen J. Cole-Hatchard, CEO of Frontline. "This money will also assist us in continuing the execution of our business plan, including the growth of our calling card distribution division, and the launch of our new payroll and cash card product lines. We are continuing our efforts to restructure most of our remaining debt, and hope to announce similar successful results soon."
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