The notes, which mature four years from the date of issuance, can be converted into Pipeline common stock at the conversion price of $1.30 per share. Proceeds from the transaction are earmarked to refinance $17 million of short-term, high-coupon indebtedness and to fund acquisitions. Maxim Group LLC served as the exclusive placement agent for the transaction.

Pipeline's CEO, MacAllister Smith stated "We are pleased to announce the completion of this financing. The arrangement enables us to significantly reduce our borrowing costs and lengthen the term of our indebtedness. It also provides us with the capital to consummate acquisitions of merchant portfolios and operating companies, which we believe will significantly grow our revenue and cash flow. We feel this transaction is extremely beneficial for our company and for our shareholders."

None of the convertible notes or warrants nor the shares of common stock underlying the convertible notes and the warrants issued in the financing have been registered under the Securities Act of 1933, as amended. Accordingly, these shares may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act. Under the terms of the financing, Pipeline is obligated to file a registration statement covering the shares of common stock underlying the convertible note and warrants.