Dato' Low Tuck Kwong, Manhattan Resources invest $10 million total
By Devika Patel
Knoxville, Tenn., Feb. 16 - EcoBlu Products, Inc. negotiated a three-year revolving credit agreement with Manhattan Resources Ltd. on Feb. 14, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The revolver is for $5 million, and the company also sold $5 million of shares to Dato' Low Tuck Kwong on the same date.
The 81 million shares were sold at about $0.062 apiece, or an 11.43% discount to the Feb. 13 closing share price of $0.07.
The revolver will bear interest at 6%.
Manhattan Resources also received warrants for 50 million shares, which are exercisable at $0.10. The strike price reflects a 42.86% premium to the Feb. 13 closing share price.
Proceeds will be used for debt repayment and working capital.
EcoBlu is a Vista, Calif.-based manufacturer of proprietary wood products coated with an eco-friendly chemistry.
| Issuer: | EcoBlu Products, Inc.
|
| Issue: | Revolving credit agreement, common shares
|
| Amount: | $10 million
|
| Settlement date: | Feb. 14
|
| Stock symbol: | OTCBB: ECOB
|
| Stock price: | $0.07 at close Feb. 14
|
| Market capitalization: | $6.25 million
|
|
|
| Revolver
|
| Amount: | $5 million
|
| Maturity: | Three years
|
| Coupon: | 6%,
|
| Warrants: | For 50 million shares
|
| Warrant strike price: | $0.10
|
| Investor: | Manhattan Resources Ltd.
|
|
|
| Shares
|
| Amount: | $5 million
|
| Shares: | 81 million
|
| Price: | $0.062 (approximate)
|
| Warrants: | No
|
| Investor: | Dato' Low Tuck Kwong
|
© 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.
