By Sheri Kasprzak
New York, July 26 - GreenMan Technologies Inc. said it has completed a private placement with Laurus Master Fund Ltd. for $1 million.
Laurus bought a convertible term note that matures on June 30, 2007, bears interest at Prime rate plus 175 basis points and is convertible into common shares at $0.33 each, a price equal to the average closing price of the company's stock for the three days ending July 18.
The principal will be amortized over the term of the note beginning Feb. 1, 2006 with minimum monthly payments of $58,823.53.
Principal and interest on the note will be automatically convertible into stock if the average closing price of GreenMan's shares exceeds 110% of the conversion price for more than five trading days.
The company must pay a 2% premium on each principal payment and, if prepaid, a 20% premium on the then-outstanding balance of the note.
Laurus also received options to buy 2,413,571 shares.
Based in Lynnfield, Mass., GreenMan recycles tires.
| Issuer: | GreenMan Technologies Inc.
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| Issue: | Convertible term note
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| Amount: | $1 million
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| Maturity: | June 30, 2007
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| Coupon: | Prime rate plus 175 basis points
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| Conversion price: | $0.33
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| Call: | May be prepaid at a 20% premium to the then-outstanding balance. May automatically convert into common shares if the company's stock trades above 110% of the conversion price for five consecutive trading days
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| Options: | For 2,413,571 shares
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| Investor: | Laurus Master Fund Ltd.
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| Settlement date: | July 20
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| Stock price: | $0.31 at close July 20
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