Two offerings raise proceeds for debt retirement and growth capital
By Devika Patel
Knoxville, Tenn., Dec. 16 - CleanTech Innovations, Inc. completed a private placement of units on Dec. 13, according to an 8-K filed Thursday with the Securities and Exchange Commission. It raised $10 million in the placement and a further $10 million through a loan agreement.
In the placement, the company sold 2.5 million units at $4.00 apiece. Each unit consists of one common share and a warrant for 0.675 of a share. Each whole warrant is exercisable at $4.00 for five years. The company issued a total of 1,687,500 warrants.
The strike price reflects a 33.88% discount to the Dec. 10 closing share price of $6.05.
The 10% loan was negotiated with NYGG (Asia), Ltd. and is due on March 1, 2012.
Proceeds will be used to retire short-term debt, to provide necessary growth capital in time to fund the manufacturing of significant wind-tower supply contracts already received, to participate in new wind-tower contract bids and to fulfill a significant amount of new wind-tower contracts the company expects to receive in December and early 2011.
The New York company designs and manufactures high-performance clean-technology products that promote renewable energy generation, energy savings and pollution reduction.
| Issuer: | CleanTech Innovations, Inc.
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| Issue: | Units of one common share and one warrant for 0.675 shares, loan
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| Amount: | $20 million
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| Settlement date: | Dec. 13
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| Stock symbol: | Nasdaq: CTEK
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| Stock price: | $6.75 at close Dec. 13
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|
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| Units
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| Amount: | $10 million
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| Units: | 2.5 million
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| Price: | $4.00
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| Warrants: | For 1,687,500 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $4.00
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| Loan
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| Amount: | $10 million
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| Maturity: | March 1, 2012
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| Coupon: | 10%
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| Warrants: | No
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| Investor: | NYGG (Asia), Ltd.
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