i2Telecom International Inc. has gotten a $1.75 million shot in the arm from venture capitalists, Cornell Capital Partners LP.
i2Telecom makes the USB-compatible VoiceStick that lets users carry their phone numbers wherever they go, so they can use their softphones. The company distributes through agents and other solutions providers.
Cornell already has given i2Telecom $600,000; it will give the VoIP company a second $600,000 installment before it files a statement with the Securities and Exchange Commission, and then will provide i2Telecom with another $500,000 after that statement takes effect.
“We believe i2Telecom has a unique technology in the exciting and growing Internet telephony sector. We are pleased to become one of i2Telecom’s strategic financial partners,” said Antony Ghee, senior vice president of corporate finance at Cornell Capital.
The deal came about when i2Telecom agreed to sell Cornell $1.75 million in secured convertible debentures or promissory notes which mature in three years. Before January 2009, Cornell can convert some or all of the outstanding principal and interest of those debentures into i2Telecoms common stock at a share price less than 10 cents per share.
“The Cornell financing will allow us to take advantage of numerous opportunities, and I am very excited about the prospects ahead, said Paul Arena, CEO of i2Telecom.