Flint Telecom Group Inc., an international telecoms technology and services organization, has completed a Reserve Equity Finance Agreement with New York-based AGS Capital Group, LLC. Over the next two years, AGS will purchase $10 million worth of shares of the Flint common stock for cash consideration.
The equity agreement positions Flint Telecom in control of how and when it will raise equity and debt. Flint must increase its total authorized common shares and have an effective registration statement in place, both of which the company said are in progress.
Vincent Browne, chairman and CEO of Flint said the equity agreement is in-line with the company’s recent financial efforts, and that it will fuel the company to expand in several aspects.
“This agreement is a very significant step for the company that, along with recent debt reduction and restructuring, underpins operations going forward. I believe it will provide the necessary growth capital to allow us to accelerate our growth, both organically and through M&A activities, in the rapidly expanding VoIP (Voice over Internet Protocol), and wireless technology services markets globally. AGS is a strong financial partner and we look forward to working closely with them to build sustainable value for our shareholders in a significant global business,” Browne stated in the press release.
According to today’s press release, Flint has the option to sell its common shares or to issue debt to AGS, and the agreement does not prohibit Flint from making efforts to raise additional debt or equity financings, other than financings similar to this agreement.
“We are very excited to be working with Flint Telecom as they have a very well thought out strategy with the opportunity to grow significantly in a trillion dollar industry. We look forward to providing them with the necessary capital and support to achieve this potential in the coming years,” stated Allen Silberstein, principal at AGS Capital Group.
For more information visit www.flinttelecomgroup.com