The Canadian firm also has three call warrants to buy to an additional 3.5 million shares within the next six months at an average price of 67 cents.

Terremark's common on the American Stock Exchange Tuesday closed at 51 cents per share, down 13 cents from 64 cents July 22. The stock's 52-week high-low is $1.07 and 22 cents per share. The company has 199 million shares outstanding.

Terremark lost $33.9 million in the first nine months of fiscal 2001 compared to a loss of $32.2 million in the same 2000 period. The company previously informed the Securities and Exchange Commission its financials for fiscal 2002 which ended March 31 would be late because it is trying to close two sales transactions.