Usell.com, Inc. announced that it expects to receive $8.57 million in funding
January 12, 2017
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usell.com, Inc. (OTCPK:USEL) announced that it has entered into a note purchase agreement for a secured promissory note of principal value of $8,600,000 at an original issue discount of 1% for gross proceeds of $8,572,400 an institutional investor on January 13, 2017. The company issued note along with its subsidiary BST Distribution, Inc and We Sell Cellular LLC. The company issued securities pursuant to exemption provided under Regulation D. The note matures three years from issuance on January 13, 2020 and bears interest at an annual rate of 13.25%, which interest is due and payable monthly in arrears. In addition, the company paid the lender a fee equal to 2% of the aggregate original principal amount of the note and will pay the lender a monthly maintenance fee based on an annual rate of 0.75% of the aggregate original principal amount of the note. The note is repayable after 18 months with a 3% prepayment penalty. In connection with the issuance of the note, the company granted the lender a right of first refusal to participate in future financings for as long as the principal balance of the note remains outstanding. The note carries a guaranty clause with its subsidiaries.
PhoneX Holdings, Inc. is engaged in building the cloud-based software-as-a service solution for the wholesale exchange of pre-owned mobile devices. The Company works with mobile carriers and mobile handset distributors to facilitate global commerce related to pre-owned mobile devices. The Company operates through two models: Proprietary Trading Model and Platform Partnership Model. Its Proprietary Trading Model, through which it purchases devices utilizing its own balance sheet via its subsidiary We Sell Cellular LLC. Its Platform Partnership Model, through which it enables its partners to license its software via its subsidiary PhoneX, Inc. Through these licensing agreements, the Company enables mobile carriers and mobile handset distributors to increase selling prices and selling velocity by using a specialized, automated platform where wholesale buyers of mobile devices can purchase inventory on demand.