Austin Firms Round Up Aggregate $12.5 Mil

AUSTIN-Two Austin companies bulked up their corporate treasuries with new investment from previous investors. Prosoft Training has issued $2.5 million in convertible securities and Netbotz Inc. raised $10 million in its second round of venture capital.

Prosoft, which develops and sells educational certification for information technology, has agreed to issue $2.5 million of convertible subordinated notes to Dallas-based Hunt Capital Group. The five-year notes carry a 10% coupon, will not require cash debt service until maturity and will be convertible at 120% of the market price of Prosoft stock on closing.

The company, whose offices are in the southwest submarket, did not disclose specific uses for the money, but said it would provide flexibility and allay investor concerns about liquidity. In August, the company said it expected lower revenues for its fourth quarter. It reduced staff by 15% and cut executive compensation. The company is to release its latest financial results this afternoon after the markets close. Prosoft shares are trading at 75 cents.

Netbotz, which has raised $15.6 million in its two rounds, will use the latest round for product development and marketing. Investors include previous investors CenterPoint Ventures, SSM Venture Partners and Sanchez Capital Partners, Hill Partners Inc., the Austin-based real estate company, and new investor Osprey Ventures LP. Hill has backed Netbotz since the company started out, providing founder Gerry Cullen with loft space in its offices.