Company sells 8% five-year notes with five-year warrants to Emerald
By Devika Patel
Knoxville, Tenn., June 24 - Echo Automotive, Inc. settled a $200,000 private placement of a 8% secured convertible promissory note with Emerald Private Equity Fund, LLC on June 20, according to an 8-K filed Monday with the Securities and Exchange Commission.
The note matures in five years and is convertible into common shares at $0.70 per share. The conversion price is a 70.73% premium to the June 19 closing share price of $0.41. The company may force conversion.
Emerald also received warrants for 714,286 common shares. The warrants are each exercisable at $0.65 for five years. The strike price is a 58.54% premium to the June 19 closing share price.
Based in Scottsdale, Ariz., Echo offers a technology that it claims enables fleet vehicles to reduce their fuel expenses by 50%.
| Issuer: | Echo Automotive, Inc.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $200,000
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Conversion price: | $0.70
|
| Conversion premium: | 70.73%
|
| Call: | Yes
|
| Warrants: | For 714,286 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.65
|
| Investor: | Emerald Private Equity Fund, LLC
|
| Fees: | $10,000
|
| Settlement date: | June 20
|
| Stock symbol: | OTCBB: ECAU
|
| Stock price: | $0.41 at close June 19
|
| Market capitalization: | $30 million
|
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