The new offering will be under the same terms as the original financing, which was first announced late last year.
The debentures will mature three years from their date of issuance, and bear interest at a rate of 12% per year, which will be paid quarterly.
They can be converted into common shares of the company, at a conversion rate of 20 cents per share, at any time before the earlier of the maturity or redemption date.
Last week, DealNet said its business process outsourcing (BPO) unit officially launched services for the $10 million contract announced earlier this month with a U.S. based Fortune 500 financial services client.
The unit, OC Communications Group (OCCGI), has been bringing home the bacon for DealNet. The last month alone has brought news of OCCGI winning a $10 million contract over five years; a 3 year contract of up to $3 million; and another $10 million deal over 10 years. That’s $23 million in recurring revenue from inking multiple long term contracts with significant brands, all of this on top of the existing backlog.
For the latest $10 million contract, the BPO unit is providing inbound customer service in English and Spanish from its Reno, Nevada location, with the program rolling out to four million customers.
DealNet’s focus on recurring income doesn’t stop with OCCGI. In fact, coming down the line is DealNet’s next business, One Dealer, set for a “massive” launch this month. One Dealer will provide a host of financing and other services to heating, ventilation and air conditioning (HVAC) dealers and their customers, underpinned by the controls and processes of OCCGI to serve its own consumer financing customers.