The company, headquartered in Miami, Florida, said the convertible preferred stock was issued in exchange for $7.8 million in cash and $2.2 million in promissory notes – $1.0 million due April 25, 2004 and $1.2 million due June 1, 2004. According to Carrier Hotels, the company is expected to use the proceeds to meet up to $3.8 million in obligations. The company has more than $23 million in obligations coming due this year.
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The preferred stock is convertible into common stock at $0.75 per share. A total of 2.8 million warrants convertible into the company’s common stock is attached to the convertible preferred stock, set at an exercise price of $0.90 per share.
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Terremark recently announced that it has signed several contracts with new and existing customers, including BellSouth MNS, Inc., the Internet services division of BellSouth, Cable & Wireless USA (now Savvis), and Yahoo.
