SEC Company Response from VERIDICOM INTERNATIONAL INC (CIK 0000710217) — Jun 22, 2005
VERIDICOM INTERNATIONAL INC (CIK 0000710217)
Date: June 22, 2005 · CIK: 0000710217 · Accession: 0001144204-05-019681
AI Filing Summary & Sentiment
File numbers found in text: 333-124367
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Sichenzia Ross Friedman Ference LLP
1065 Avenue of the Americas New York NY 10018
Tel 212 930 9700 Fax 212 930 9725 www.srff.com
June 22, 2005
Perry Hindin, Staff Attorney
Division of Corporation Finance
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Mail Stop 04-06
Re: Veridicom International, Inc.
Registration Statement on Form SB-2
Filed April 27, 2005
File No. 333-124367
Dear Mr. Hindin:
This firm represents Veridicom International, Inc. (the "Company") in the
above-referenced matters. Enclosed for filing is the Company's amended
Registration Statement on Form SB-2. Below please find our responses to your May
29, 2005 comment letter:
Form SB-2
General
1. You disclose on page 7 that this registration statement relates to the
resale of common stock underlying convertible notes in the aggregate
principal amount of 5.1 million. You disclose on page 8 that this
aggregate amount will be funded in 3 separate tranches, each in the amount
of $1.7 million, with two of the tranches to be funded after the fi1ing of
this registration statement. However, the purchase agreement governing the
sale of these notes appears to indicate that the $5.4 million was to be
fully funded on February 25, 2005. When you filed the resale registration
statement, were the selling stockholders irrevocably bound to purchase
notes in the aggregate principal amount of $5.4 million not later than
five business days following the effective date of the resale registration
statement? In your response letter please identify the agreement and the
specific section thereof that contains this binding obligation and ensure
the agreement has been filed as an exhibit. In addition, please provide us
a copy of the irrevocable transfer agent instructions referred to in
Section 7C of the purchase agreement.
Response
When the registration statement was filed by the Company, the selling
stockholders were irrevocably bound to purchase notes in the aggregate
principal amount of $5.1 million (and not $5.4 million) in accordance with
the Securities Purchase Agreement, which was filed as Exhibit 10.1 of the
Form 8-K filed by the Company on March 2, 2005. Pursuant to Section 1(a)
of the Securities Purchase Agreement, each Buyer agreed to purchase notes
and warrants in the amount set forth below its name on the signature page
thereto. If the amounts set forth therein were to be added, it would equal
an aggregate investment of $1.7 million by the selling stockholders.
Furthermore, Section 4(l) provides that the selling stockholders are
obligated, subject to certain requirements, to acquire an aggregate of
$3.4 million of additional notes and warrants subsequent to the filing of
the registration statement. In addition, attached is a copy of the
irrevocable transfer agent instructions referred to in Section 7(c) of the
Securities Purchase Agreement.
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2. Based upon our review of the form of convertible note issued in connection
with the February 25, 2005 private placement, including Section 2.1 and
the notice of conversion, are we correct in believing that holders of such
notes have the right to require that some, none or all future interest
accrued under the note be paid in the form of shares of common stock? If
so, we presume that such holders are not proposing to sell shares of
common stock under the registration statement they would acquire upon
conversion of amounts due them resulting from future accruals of interest.
Revise your registration statement to make it clear that you are not
registering such shares and that the prospectus may not be used to sell
such shares.
Response
Based upon your comment, the Company and the requisite numbers of holders
of the convertible notes have executed an amendment to the notes, which
provides that all payments of future interest accrued can be made with
cash or common stock at the discretion of the Company. A form of such
amendment has been filed as an exhibit to the Company's amended
Registration Statement on Form SB-2. In addition, this point has been
clarified in the description of the convertible notes provided in the Form
SB-2.
Selling Stockholders, page 51
3. Please disclose the natural persons who exercise voting and/or dispositive
powers with respect to the securities to be offered for resale by Alpha
Capital, Enable Growth Partners, Whalehaven Capital Fund Limited,
Meadowbrook Opportunity Fund and TCMP3 Partners. See Interpretation I60 of
the July 1997 manual of publicly available CF telephone interpretations,
as well as interpretation 4S of the Regulation S-K portion of the March
1999 supplement to the CF telephone interpretation manual.
Response
As requested we have revised the registration statement to disclose the
natural persons who exercise voting and/or dispositive powers with respect
to the securities to be offered for resale by Alpha Capital, Enable Growth
Partners, Whalehaven Capital Fund Limited, Meadowbrook Opportunity Fund
and TCMP3 Partners.
In connection with the foregoing responses we hereby acknowledge the
following on behalf of the Company:
o The Company is responsible for the adequacy and accuracy of the
disclosure in the filing;
o Staff comments or changes to disclosure in response to staff
comments in the filings reviewed by the staff do not foreclose the
Commission from taking any action with respect to the filing; and
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o the Company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the
federal securities laws of the United States.
***
Should you have any further questions, please do not hesitate to contact
the undersigned at 646-810-2179
Sincerely,
/s/ Yoel Goldfeder
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Yoel Goldfeder
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