WARWICK, RI, Nov 09, 2010 (MARKETWIRE via COMTEX) — ICOA, Inc. (PINKSHEETS: ICOA) today announced that it has completed the conversion of $2,070,000 of debt to equity as follows:
– A judgment against the company of $1.0 million for unpaid lease costs plus accrued interest of about $100K was settled for $750,000 of Pfd B (300,000 shares) at a price of $2.50 per share.
– Accrued payroll in the amount of $970,000 was converted to equity through the issuance of 388,000 shares of Preferred B at a price of $2.50 per share.
– The Preferred B Series shares have a mandatory lock-up of one year while the company is a non-reporting entity and six months when it becomes reporting with the SEC. In addition, all conversions are then subject to the rules of Rule 144 as they might apply to the holders.
As previously announced, the Company plans to substantially reduce its debt load through conversion of debt into equity. This will help strengthen the Company’s Balance Sheet in anticipation of its previously announced plans regarding the acquisition of private Wi-Fi providers by the end of the year which we are currently negotiating.
About ICOA ICOA, Inc. (PINKSHEETS: ICOA) is a national provider of wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operation, maintenance and management of Wi-Fi hot-spot and hot-zone Internet access. Based in Warwick, Rhode Island, ICOA owns or operates broadband access installations in high-traffic locations across 40 states, located in airports, quick-service restaurants, hotels and motels, travel plazas, marinas etc. ICOA networks are compatible with widely-used 802.11x technology and with virtually all Internet service providers. Further information is at www.icoacorp.com.
Safe Harbor: This press release includes forward-looking statements related to theglobe.com, inc. that involve risks and uncertainties, including, but not limited to, risks and uncertainties relating to integration of newly acquired businesses and assets, product delivery, product launch dates, risks relating to the Internet, development and protection of technology, the availability of financing or other capital to fund its plans and operations, the management of growth, market acceptance of our products, our ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation (particularly as it pertains to the Internet), pending litigation and other risks. These forward-looking statements are made in reliance on the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. For further information about these and other factors that could affect ICOA’s future results and business plans, please see the Company’s filings with the Securities and Exchange Commission, including in particular our Annual Report on Form 10-K for the year ended December 31, 2005, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006. Copies of these filings are available online at http://www.sec.gov. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially and adversely from management expectations.