By Devika Patel
Knoxville, Tenn., Sept. 19 - ECO2 Plastics, Inc. settled a $4.1 million convertible secured bridge loan on Sept. 15, according to an 8-K filed Friday with the Securities and Exchange Commission.
The loan is evidenced by convertible secured promissory notes. The notes mature March 31, 2009. They bear interest at 15%.
The loan is secured by all of the company's assets.
Investors also received warrants for 136,666,667 shares, which are exercisable at $0.015 until April 14, 2015.
Proceeds will be used to purchase new equipment and spare parts for the company's continuous flow CO2 cleansing process and Pla.to pre-cleaning systems (estimated at $1.2 million), reduce trade payables (estimated at $800,000) and fund operations through December, with the remainder of the proceeds to be available for growth initiatives.
ECO2, based in San Francisco, has developed a system that cleans post-consumer plastics, without the use of water, at cost savings versus traditional methods within a closed-loop system.
| Issuer: | ECO2 Plastics, Inc.
|
| Issue: | Convertible secured bridge loan, evidenced by convertible secured promissory notes
|
| Amount: | $4.1 million
|
| Maturity: | March 31, 2009
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Warrants: | For 136,666,667 shares
|
| Warrant expiration: | April 14, 2015
|
| Warrant strike price: | $0.015
|
| Announcement date: | Sept. 19
|
| Settlement date: | Sept. 15
|
| Stock symbol: | OTCBB: ECOO
|
| Stock price: | $0.02 at close Sept. 19
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
