3 E Network Technology amends $7.4M convertible notes offering

3 E Network Technology (MASK) announced the amendments to its previously announced private placement of senior convertible secured notes. The Offering, originally announced on June 9, provided for three tranches of Notes and Warrants with a total principal amount of $7.4M. The Company and the Investor entered into a letter agreement to amend the Securities Purchase Agreement dated June 9. Pursuant to the Letter Agreement, the parties agreed to amend the First Tranche Note such that the remaining portion thereof cannot be converted below a floor price equal to $0.63, which represents 20% of the Minimum Price as of June 9, the date of execution of the Securities Purchase Agreement and amend the Warrant such that its exercise price cannot be below the Floor Price, and in the event the applicable conversion price or exercise price would otherwise be below such Floor Price, the Company will issue shares at the Floor Price and pay the Investor the resulting economic difference in cash, calculated as set forth in the Letter Agreement. Furthermore, pursuant to the Letter Agreement, the parties also agreed that all references to the second and third tranches in the Securities Purchase Agreement shall no longer apply and be null and void. The Company intends to use the net proceeds for general corporate and working capital or other purposes that the Company’s Board of Directors deems to be in its best interest.