Rancho Cordova, California-based 3Net Systems Inc looks to have been rescued – it has won a new investment agreement with one James Cameron, subject to Nasdaq relisting 3Net on the Nasdaq Small Cap Market as a result of the new capital; Cameron’s obligations are also subject to 3Net increasing the $1.125 exercise price of its previously announced warrant dividend to $2.50 a share; 3Net has also revised its agreement with a major bank creditor, and the bank has now agreed to forgive a debt of about $550,000 in return for an immediate cash payment of $100,000 and issue of a warrant to acquire 100,000 common shares at 1 cent a share; Cameron and other investors chosen by him will pay $1.51m for 251,666 Series B preferred shares convertible into 6.04m common shares and pay $60,000 for 6m common shares; and at the end of the month, Cameron and the other investors will pay $800,000 for an additional 133,333 Series B preferred shares convertible into 3.2m new common shares.
