Video Company Notches $4M

Educational Video Conferencing Inc. of Yonkers, N.Y., recently placed $4 million of preferred stock and warrants with The Shaar Fund Ltd., according to a Securities and Exchange Commission filing.

The Shaar Fund purchased 400,000 shares of Series A convertible preferred stock and warrants to purchase 40,000 shares of common stock.

The preferred stock accrues cumulative dividends of 7.5% per year payable quarterly in cash or in shares of common stock.

The preferred stock can be converted, prior to Sept. 30, 2000, into common stock at 87.5% of the average bid price and thereafter at 85%. The warrants are exercisable at $21.27 per share.

Proceeds are slated for working capital and general corporate purposes.

The company paid a finder’s fee of $240,000 in cash and three warrants to purchase 3,870 shares of common stock at $20.67 per share.

The company’s interactive video conferencing system links colleges and training organizations with corporations, offering courses via video classrooms.

The company recently entered into an agreement with the National Football League Players Association whereby it will provide college courses and training programs to current and former players and staff and their families.