United American Corp Inc. said a majority of TNW Wireless Inc.'s debt assumed as part of its acquisition of the Canadian wireless operator will be converted into equity in United American.

The transaction will convert a C$2.1 million promissory note held by RuralCom Capital Corp. in addition to accrued interest into common shares of United American at a conversion rate of 15 U.S. cents per share for a total issuance to RuralCom Capital of 11,500,000 shares, according to March 25 news release.

The remaining US$400,000 promissory note, due in December, is held by a private Canadian equity firm.