GRAND RAPIDS – BestNet Communications has named a new board member and converted preferred stock to common, generating $448,000 for the Internet telephone company.
Named to a vacant board seat is Anthony Silverman, a General Partner of Katsinam Partners, an investment fund focused on Micro and Smallcap public companies. He has been a shareholder of BestNet since April 2002.
The Board also reported that it closed its contingent approval to split the outstanding units into the securities comprising such units, effective August 10, converting shares of Series A Convertible Preferred Stock into shares of common stock. The change netted $448,000 for BestNet.
BestNet CEO Richard Bourke, who replaced former CEO Robert Blanchard last month just as the company announced yet another huge loss, the new funds will permit BestNet to continue to expand its product offerings, and extend its reach through a newly focused marketing and sales effort.
BestNet provides long distance; conference calling, ClicktoPhone and custom application-based communication services via the Internet, standard phones and wireless devices.
Last month, BestNet reported its losses from operations in the third fiscal quarter of 2004 amounted to $773,473, down considerably from the $1.2 million third quarter loss of the third fiscal quarter in 2003. The heavy losses came despite a record third quarter revenue of $557,000. The loss per common share was 3 cents basic and 6 cents fully diluted.
