Indeed, it is not easy. I am like a ninja with this stuff though and the company is usually forthcoming with me. If not, there are other ways.
There was one particular loan that IDT made that troubled VG some time ago (supposedly) . I checked into this and other and found them all to be aboveboard and normal course of business.
This one particular loan has since been paid in full. I notified VG, but I don't think he really cares.
If you care though, here is proof, that anyone could have found. I give this just so Mr. Pink will not have to waste his time. I can assure you there are no bones buried in this company that I have not uncovered that anyone else could:
(COMTEX) B: EGLOBE ANNOUNCES COMMITMENT FOR $20 MILLION FINANCING
B: EGLOBE ANNOUNCES COMMITMENT FOR $20 MILLION FINANCING
WASHINGTON, April 13 /PRNewswire/ -- eGlobe (Nasdaq: EGLO) today
announced it concluded a $20 million long-term debt financing agreement
with EXTL Investors, LLC, an affiliate of Ronald Jensen, the largest
shareholder of the Company. The debt is subject to shareholder
approval at the next annual meeting, planned for June. In the interim,
a one-year loan of $7 million has been extended to eGlobe by EXTL
Investors to serve as a bridge to the full facility. This short-term
loan will be retired at the closing of the long-term $20 million
facility.
In the judgement of management, the $20 million debt coupled with the
$10 million equity financing earlier this year and existing and
anticipated vendor financing, will provide sufficient funds to
underwrite a baseline growth plan for the Company through the end of
1999. The proceeds from the financing will be used to fund capital
expenditures relating to the expansion of the Company's network of
Internet Protocol (IP) trunks and Intelligent platforms for its Global
Office suite of services, including its calling card and unified
messaging services, to repay debt, and for working capital and general
corporate purposes.
"This financing will help take us a long way toward our goal of
building a leading global provider of intelligent network based
communications services, particularly IP based services. It will allow
management to focus its efforts on executing the Company's business
plan and recruiting executive talent to grow the business," said eGlobe
Chairman and CEO Christopher Vizas. "Equally important, it provides
the Company with a more flexible and less risky structure than the High
Yield alternatives that were being proposed to us. While the overall
return to the investor is similar, the cash impact on the Company and
the risks of default are much lower. Under the terms, the Company is
permitted to raise additional funds and make investments in growth --
this financing does not include many of the restrictive covenants
common in other debt arrangements."
The $7 million bridge is in the form of an 8% unsecured loan. While
unsecured and subordinate to some other financing, it does impose
significant negative covenants on the Company while it remains
outstanding. Warrants to purchase 500,000 common shares at $.01 per
share become exercisable with the loan and warrants to purchase another
one million common shares will become exercisable in the event that the
loan remains outstanding after the annual meeting, either because the
shareholders do not approve the $20 million facility or because the
Company chooses not to close on that facility.
The $20 million is in the form of three-year 5% secured debentures and
is subject to approval by the shareholders, in principal part because
of the size of the holdings of EXTL Investors and Jensen in the Company
following the closing of this loan. The loan will be used to repay the
bridge loan and to repay the debt outstanding to IDT Corp., as well as
funding the growth of the Company. With the closing of the loan,
warrants will be issued to purchase five million common shares of
eGlobe at a price of $1 per share. One third of these warrants are
exercisable immediately, one-third on the first anniversary of the
loan, and one third on the second anniversary of the loan. The Company
can prepay without penalty at any time and, under certain
circumstances, can cause up to 50% of the loan to convert to equity.
eGlobe is a leading supplier of global enhanced telecommunications and
information services, including Internet voice and fax, calling card
services along with related validation, billing and payment systems,
and other international Intranet and inter-networking services in
partnership with telecommunications operators around the world.
Operating through its World Direct network, eGlobe originates traffic
in 90 territories and countries and terminates anywhere in the world.
eGlobe provides its services principally to telecommunications
companies and financial institutions.
Certain statements in this news release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve known and unknown risks, uncertainties
and other factors that may cause the Company's actual results,
performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the
forward looking-statement. Factors that impact such forward-looking
statements include, among others, the ability of the Company to attract
additional business, the ability of the Company to successfully
integrate the IDX acquisition, complete software development and offer
new products, changes in expectations regarding restructurings,
including tax liabilities and reductions in cost, possible changes in
collections of accounts receivable, risks of competition, price and
margin trends, changes in worldwide general economic conditions,
changes in interest rates, currency rates and worldwide competition.
SOURCE eGlobe, Inc.
-0- 04/13/99 /CONTACT: Allen Mandel,
Senior VP Corporate Affairs of eGlobe, 800-688-0092; or John Heilshorn,
212-838-3777, or john@lhai.com, or Kris Otridge, 415-433-3777, or
kris@lhai-sf.com, both of Lippert/Heilshorn & Associates, for eGlobe/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 115540/
/Web site: eglobe.com (EGLO)
CO: eGlobe, Inc.; EXTL Investors, LLC ST: Colorado, District of
Columbia IN: CPR MLM SU: FNC
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