FORT LAUDERADALE, Fla., Aug. 9 (UPI) -- VoIP Inc. said Tuesday it has signed a new contract to acquire the VoIP business of WQN Inc.
VoIP Inc. announced that it has entered into an asset-purchase agreement to acquire the assets and properties utilized by WQN Inc. in its Voice over Internet Protocol business. The acquired business will operate as a wholly owned subsidiary of VoIP Inc.
Under the asset-purchase agreement VoIP Inc. will issue a $3.7 million convertible note, 1,250,000 shares of common stock and a warrant to purchase 5 million shares of common stock for nominal value. The convertible note will convert automatically to convertible preferred stock at the time such stock is authorized by the company. Details of the agreement and the transaction are contained in a Form 8-K filed Tuesday by VoIP Inc.
"The WQN Inc. acquisition provides VoIP Inc. with 60,000 retail customers using various VoIP complementary and unique products and services," said Steven Ivester, CEO of VoIP Inc. "We are excited to be able to transition their technology and applications to our VoiceOne Network. With the move to our network and operation we expect to immediately realize increased margins and greater international presence."
