Flint provides turnkey telecom services to the global telecom and media industry. Semotus has issued 28,460,094 shares of restricted common stock to Flint Telecom at the close of the transaction.
As part of the transaction, Semotus changed its name to Flint Telecom Group. Semotus will continue to operate as a division of the combined company and leverage the synergies with Flint to grow its Hiplink product line.
HipLink is an, emergency alerting messaging software that enables reporting for public safety, business continuity, disaster recovery and universities. Its application integration gives connectivity for IT alerts from any system and connectivity to any application.
Flint currently has over 20 partners including cable companies, rural telecommunication companies, and PBX vendors. Management expects the combined company to have significant revenue growth and be profitable in the first quarter of 2009.
Vincent Browne, founder and CEO of Flint, said: We are excited about the completion of this transaction as it combines two complementary businesses that together will not only produce immediate increases in both revenues and profits, but will also offer our shareholders tremendous potential to improve the long-term value of the company.
As part of the closing of the transaction, the company assumed all of Flint’s obligations under convertible promissory notes, convertible into shares of Semotus common stock, with a portion of those at a conversion price of $0.275 per share and a portion convertible at $0.40 per share.
