By Devika Patel
Knoxville, Tenn., April 20 - Ecosphere Technologies, Inc. issued a $1.5 million promissory note to Bledsoe Capital Group, LLC on April 14, according to an 8-K filed Monday with the Securities and Exchange Commission.
Under the credit agreement, Bledsoe agreed to advance up to $1.5 million to Ecosphere Energy Services, Inc., which will be guaranteed by Ecosphere Technologies.
The loan will be made in monthly installments of $250,000 starting on April 14 and is evidenced by the promissory note.
The advances are due without interest on Oct. 1, 2009 if Bledsoe elects to exercise an option to invest further in the company. If Bledsoe does not exercise this option, the advances will be due on Oct. 1, 2010, with 15% annual interest accruing beginning Oct. 1, 2009.
Additionally, if the option is not exercised, the note becomes convertible into Ecosphere Technologies common stock at $0.15 per share.
In addition, Bledsoe extended the due date of its $1 million note that was issued by Ecosphere Energy Services on May 16, 2008. The note's maturity has been extended to Nov. 30, 2009 from May 16, 2009.
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: | Promissory note
|
| Amount: | $1.5 million
|
| Maturity: | Oct. 1, 2009 if investment option is exercised; otherwise, Oct. 1, 2015
|
| Coupon: | 15%, beginning Oct. 1, 2009
|
| Price: | Par
|
| Conversion price: | $0.15, if investment option is not exercised
|
| Warrants: | No
|
| Investor: | Bledsoe Capital Group, LLC
|
| Settlement date: | April 14
|
| Stock symbol: | OTCBB: ESPH
|
| Stock price: | $0.15 at close April 14
|
| Market capitalization: | $17.1 million
|
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