VoIP Inc., a provider of Internet-protocol-based communications services based in Orlando, Fla., announced Thursday that it has completed the first phase of a planned restructuring process, reducing its debt and raising additional capital.
The company entered into an agreement with certain investors to convert approximately $7 million in debentures into common stock. Separately, VoIP Inc. raised $2.3 million via a private placement.
For 2005, the company posted a net loss of $28.3 million on revenues of $15.5 million.
VoIP Inc. also announced that it terminated a marketing and distribution agreement with Phone House, under which VoIP Inc. handled wholesale distribution and selling of prepaid telephone calling cards by Phone House.
The company added that it expects that terminating that deal will reduce annual operating expenses "significantly."