VoIP service provider VoIP Inc. raised $2.3 million in a private placement and also terminated a marketing and distribution agreement as part of the just-completed first phase of its corporate restructuring.

The funding source was not disclosed. In a separate development, the company forged an agreement with other investors to convert about $7 million in debentures into common stock.

VoIP Inc. also announced that it has terminated a money-losing marketing and distribution agreement with Phone House Inc., under which it was responsible for the wholesale distribution, marketing and selling of prepaid telephone calling cards.

“We believe these initiatives have positioned the company well to capitalize on the many promising opportunities available for our unique VoIP technology offerings,” said Anthony Cataldo, VoIP Inc.’s Chairman and CEO, in a statement.