By Devika Patel
Knoxville, Tenn., Aug. 6 - Alderox, Inc., formerly Reclamation Consulting and Applications, Inc., once again amended its agreement with Pala Investments Holdings Ltd. on July 31 in regards to a $7.5 million private placement of convertible debentures, which priced in December, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The deal, which was originally for $5 million, was amended to include a $2.5 million tranche in March.
The company now proposes to amend the agreement again, this time to include two more tranches. The fourth tranche will be for $700,000 and the fifth for $300,000, bringing the total to $8.5 million in debentures.
The fourth tranche settled on Aug. 5, the company said in the filing, and the fifth tranche will be subject to Pala's approval.
The deal priced for $5 million on Dec. 12 and the company settled a $3 million tranche on that day. The remaining $2 million was to settle if Alderox achieved certain performance benchmarks by December 2008.
Under the March 28 agreement, the deal was lifted to $7.5 million, and a $2.5 million tranche settled immediately.
The debenture carries a 12% coupon, compounding quarterly, and matures on Dec. 11, 2010.
It is secured by substantially all of the company's assets.
In the first and third tranches, Pala received warrants for 5.5 million common shares.
Pala is also entitled to warrants for 2 million shares for the second tranche. It received a warrant for 700,000 shares in the fourth tranche and will receive one for 300,000 shares in the fifth tranche.
The warrants are exercisable at $0.42 for three years.
Alderox is an industrial supply company based in San Clemente, Calif.
| Issue: | Secured convertible debentures
|
| Amount: | $8.5 million
|
| Maturity: | Dec. 11, 2010
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $0.14 (post-reverse split)
|
| Warrants: | For one share per dollar invested
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.42
|
| Investor: | Pala Investments Holdings Ltd.
|
| Pricing date: | Dec. 12
|
| Revised: | March 28, July 31
|
| Settlement date: | Dec. 12 (for $3 million), March 18 (for $2.5 million), Aug. 5 (for $700,000)
|
| Stock symbol: | OTCBB: RCAAE
|
| Stock price: | $0.12 at close Oct. 17 (last trade)
|
© 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.
