By Devika Patel
Knoxville, Tenn., Sept. 24 - Ecosphere Technologies, Inc. announced a $1.86 million proceeds private placement of its secured convertible notes, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
It said it has so far received $1.22 million of the proceeds.
The one-year notes are convertible into common shares with an initial conversion price of $0.36.
The investors bought the notes at a 10% discount in lieu of receiving 10% in interest, resulting in the company issuing $2.06 million in principal of notes.
Patrick Haskell, the company's chairman and co-chief executive officer, invested $100,000; Michael Furman, the company's executive vice president, invested $100,000; and Stephen Keating, a company director, invested $180,000.
Haskell and Furman each received $111,111 in notes and Keating received $200,000 in notes.
Based in Stuart, Fla., Ecosphere develops products to decrease the emissions of contaminated residue into the air, ocean and other water systems.
| Issuer: | Ecosphere Technologies, Inc.
|
| Issue: | Secured convertible notes, warrants
|
| Amount: | $2,061,111
|
| Maturity: | One year
|
| Coupon: | 0%
|
| Price: | 90 (company raised $1,855,000 in proceeds)
|
| Conversion price: | $0.36
|
| Warrants: | No
|
| Settlement date: | Sept. 24 (for $1,215,000 in proceeds, or $1.35 million in notes)
|
| Stock symbol: | OTCBB: ESPH
|
| Stock price: | $0.69 at close Sept. 24
|
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