Sale of 2.73 million units conducted with United Fleet Financing
By Devika Patel
Knoxville, Tenn., May 22 - Echo Automotive, Inc. negotiated a private placement of units with United Fleet Financing LLC to raise $1.5 million on May 16, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The financing will be completed in nine monthly installments starting on June 15.
The company will sell 2,727,273 units of one common share and one warrant for 1.25 shares at $0.55 per unit.
Each whole warrant is exercisable at $0.65 for five years. The strike price is a 62.5% premium to the May 15 closing share price of $0.40.
Proceeds will be used for working capital.
Based in Scottsdale, Ariz., Echo offers a technology that enables fleet vehicles to reduce their fuel expenses by 50%.
| Issuer: | Echo Automotive, Inc.
|
| Issue: | Units of one common share and a warrant for 1.25 shares
|
| Amount: | $1.5 million
|
| Units: | 2,727,273
|
| Price: | $0.55
|
| Warrants: | One warrant for 1.25 shares per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.65
|
| Investor: | United Fleet Financing LLC
|
| Pricing date: | May 16
|
| Stock symbol: | OTCBB: ECAU
|
| Stock price: | $0.40 at close May 15
|
| Market capitalization: | $35.85 million
|
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