EGLOs 10Q stated that:
The loan is due to shareholder approval. It, therefore cannot have been paid before the recent meeting. VultCaps usually won't advance cash before the deal is perfect, it can even take until the additional shares for the underlying are registered.
If it is already paid, you know indeed more than the public.
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Through April 30, 1999 the Company has acquired new funding and
commitments in excess of $32.0 million: $10.0 million from the sale of convertible stock (of which the $8.0 million has been received and $2.0 million will be advanced upon registration of the underlying common shares); $20.0 million in committed long-term debt which is subject to stockholder approval (under the commitment, the Lender has provided a bridge loan of $7.0 million which the Company has drawn down); and $2.0 million or more in vendor financing for network equipment purchases. Assuming that stockholder approval is forthcoming for the long-term debt, these funds might permit the Company to meet a modest baseline growth plan. To achieve the growth, both short and long-term, that management is targeting, however, will require additional capital. The plan under which the Company is currently operating requires cash in the second half of the year which the Company anticipates will come from (1) a capital markets financing of debt or equity in the second half of the year of up to $30.0 million, and (2) secured equipment-based financing of up to $10.0 million.
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So, as the "news" state:
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.
But note that:
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Company Press Release
SOURCE: eGlobe, Inc.
eGlobe Holds Annual Shareholder Meeting
WASHINGTON, DC, June 18 /PRNewswire/ -- eGlobe (Nasdaq: EGLO - news)
The shareholders approved ten management supported proposals. At the meeting, the shareholders voted to:
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* Approve the issuance of common stock in connection with a $20 million financing arrangement with EXTL Investors
* Allow EXTL investors, the Company's largest shareholder, to own more than 19.9% of eGlobe common stock
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