VoIP Inc. has recently completed a series of private placements with investors totaling $4.7 million.

The financing includes the assumption by the investors of a Note Payable having an outstanding principal balance of $1,917,581 formerly held by Cedar Boulevard Lease Funding LLC. The proceeds of the financing were used to repay outstanding promissory notes with a total principal balance of $1.7 million. The remaining proceeds will be used for working capital. Under the terms of the agreements, the debentures are convertible into shares of restricted common stock. As a result of the financing and a previous amendment to the Cedar Note, approximately $234,000 in monthly cash payments were eliminated.

“We believe the company is now well positioned to grow its business, including expanding relationships with many high profile customers and capitalizing on new opportunities,” said Anthony J. Cataldo, VoIP Inc. (News - Alert)’s chairman and CEO, in a statement. “This transaction eliminates a great deal of uncertainty regarding our financial condition, which should favorably impact our relationships with customers.”

In early February, VoIP Inc. announced that a Note Payable having an outstanding principal amount of $1,917,581 held by Cedar Boulevard Lease Funding had been assigned to a group of institutional investors.

VoIP Inc.’s service is based on technology first developed by its CTO Shawn Lewis, who wrote the patents for the first Softswitch and SS7 Media Gateway for XCOM Technologies, Inc., a CLEC he co-founded and directed before its acquisition by Level 3 Communications (News - Alert).

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Cindy Waxer is a Toronto-based freelance journalist specializing in business and technology. She has written for publications including TIME, Fortune Small Business, Business 2.0, Computerworld, Canadian Business, and Workforce Management. To see more of her articles, please visit Cindy Waxer’s columnist page.