Wed, Mar. 23, 5:22 PM
- Elephant Talk Communications (ETAK +0.9%) today said it's given a notice of default to Cross River Initiatives, the company that set a binding agreement to acquire Elephant Talk's ValidSoft subsdiary.
- Last month, stock jumped when the company said it had a $12.5M deal with Cross River, which had paid a $500K advance in January on the deal. But Cross River was to wire $8M cash to Elephant Talk no later than March 21.
- Elephant Talk isn't totally foreclosing sealing the deal with Cross River, it says, but it can't give preference or exclusivity anymore -- meaning it's back to exploring strategic options for the unit.
- Despite the "setback" in the divestiture, Chairman Hal Turner said restructuring is otherwise on track and updates would come with the company's earnings release and conference call, set for next Tuesday.
Fri, Jan. 22, 5:16 PM
- Elephant Talk Communications (ETAK +3.5%) has gotten a $500,000 advance that may be applied towards the purchase of its ValidSoft subsidiary by a potential buyer.
- The advance is structured like a loan, and there's the potential for an additional $1.5M advance.
- There's no guarantee of a sale of ValidSoft, but if it goes through, the potential $2M would be applied toward the purchase price. If the potential buyer doesn't fund the extra $1.5M by Monday, Elephant Talk will convert the $500K into a promissory note convertible into common shares at $0.30/share and a five-year warrant to buy additional shares at $0.45.