By Laura Lutz
Des Moines, Dec. 13 - Global Energy Inc. raised $1 million from the third tranche of its planned $4 million private placement of secured convertible debentures.
This tranche brings the proceeds so far to $3 million.
YA Global Investments, LP is the investor.
The $1 million debenture bears interest at 10% per year.
The first tranche, which settled on July 10, included a 5% secured convertible debenture in principal amount of $500,000. That tranche also included five-year warrants for 300,000 shares with a strike price of $2.35 and five-year warrants for 300,000 shares with a strike price of $2.50.
The second tranche settled on Oct. 21 and included a 10% secured convertible debenture in principal amount of $1.5 million principal amount.
All of the debentures mature on Oct. 31, 2010. They are all convertible into common stock at $2.20 per share.
Monthly amortizing payments begin on July 31, 2008.
New York-based Global Energy develops alternative energy technologies.
| Issuer: | Global Energy, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $4 million
|
| Maturity: | Oct. 31, 2010
|
| Coupon: | 5% for $500,000; 10% for $2.5 million
|
| Price: | Par
|
| Yield: | 5% for $500,000; 10% for $2.5 million
|
| Conversion price: | $2.20
|
| Warrants: | For 600,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.35 for half; $2.50 for half
|
| Investor: | YA Global Investments, LP
|
| Settlement date: | July 10 (for $500,000); Oct. 21 (for $1.5 million); Dec. 5 (for $1 million)
|
| Stock symbol: | OTCBB: GEYI
|
| Stock price: | $2.05 at close July 10; $0.53 at close Dec. 5
|
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