By Sheri Kasprzak
Atlanta, March 29 - Earthshell Corp. said it has received a $10 million equity line and $2.5 million in a private placement of promissory notes from Cornell Capital Partners LP.
Under the terms of the standby equity distribution agreement, Earthshell may sell shares to Cornell at 98% of the lowest volume weighted average price five trading days before notice.
Cornell will retain 5% of each advance.
There is a $500,000 a week limit for the advances.
Cornell has also purchased $2.5 million in promissory notes from Earthshell.
The company will receive $1.15 million of the investment within three days of the closing of the deal and $1.35 million once a registration statement becomes effective on the equity line.
The notes bear interest at 12% annually, beginning three months after closing. The notes have a one-year term.
Earthshell, based in Santa Barbara, Calif., is a foodservice packaging company.
Equity distribution agreement
| Issuer: | Earthshell Corp.
|
| Issue: | Standby equity distribution agreement
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| Amount: | $10 million
|
| Price: | 98% of the lowest volume weighted average price five days before notice
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners LP
|
| Settlement date: | March 23
|
| Stock price: | $1.60 at close March 23
|
|
|
| Promissory notes
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| Issuer: | Earthshell Corp.
|
| Issue: | Promissory notes
|
| Amount: | $2.5 million
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners LP
|
| Settlement date: | March 23
|
| Stock price: | $1.60 at close March 23
|
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