CommerceTel Completes $4.3 Million Financing

CommerceTel Corporation, a provider of proprietary mobile marketing technologies and solutions, announced that it has completed a private financing for $4,303,568 (“New Notes”) with accredited investors.

The financing consisted of approximately $2,612,400 of new funds and $1,691,168 principal amount plus accrued but unpaid interest outstanding under previously issued 10% Senior Secured Bridge Notes that were converted into the New Notes. The proceeds will be used to increase sales infrastructure, accelerate technology and IP plans, and for prospective corporate development opportunities. The financing proceeds were also used to repay $186,322 in principle plus accrued but unpaid interest outstanding under the previously issued 10% Senior Secured Bridge Notes as well as payoff the remaining cash consideration related to the Adsparq (Txtstation) and Mobile Visions (Mobivity) asset acquisitions.

Dennis Becker, President & CEO, explained, “We are delighted to secure additional capital at a competitive rate. With significant organic and external growth opportunities available to us, we can focus our attention on growing our business. This financing will accelerate investments in our technology and sales infrastructure to capture additional market share and build on our continued organic growth.”

The New Notes accrue interest at a rate of 10% per annum. They are convertible at the terms of a future qualified equity financing and are secured by a first priority lien and security interest in all of the Company’s assets. Additional details regarding the Company’s New Notes can be found in the Form 8-K filed with the U.S. Securities and Exchange Commission on June 4, 2012.