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Pervasip Initiates Buyout of Convertible Debt Instrument and Converts Other Debt at Above Market Rates
Jun 21, 2011 (03:06 PM EDT)
WHITE PLAINS, N.Y., June 21, 2011 /PRNewswire/ -- Pervasip Corp. (OTCQB: PVSP), a provider of Voice over Internet Protocol (VoIP) telephone services, today announced that it has sent notice to an investor to buy out a convertible debt instrument, which allows the investor to convert approximately $100,000 of debt into common stock at a 45% discount to market. Pervasip has also converted $224,000 of debt on its balance sheet into common stock, at a price of $0.08 per share.
"We continue to make progress reducing our debt and negotiating the conversion of some of our debt at a price that exceeds the market value of our stock," said Paul Riss, Pervasip's Chief Executive Officer. "In conjunction with our debt reduction, we work diligently to limit the number of shares of common stock we have to issue, and we try to only issue convertible debt instruments that we can buy back at a later date."
"We have the cash to buy out some of our more expensive convertible debt," continued Riss, "and we believe we can obtain cash in the future at a lower cost. Consequently, we believe it is advantageous for us to pay off a convertible note to prevent it from converting into common stock."
The company's transfer agent reports that total shares outstanding as of June 16, 2011 are 46,601,463, 3,690,154 of which are in certificate form and 42,911,309 are held in brokerage accounts. A total of 43,175,587 are considered free trading shares.
Pervasip Corp. delivers video and voice over IP (VoIP) telephone services for the residential and business markets. VoX differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. VoX recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
SOURCE Pervasip Corp.