By Sheri Kasprzak
Atlanta, May 3 - Energy & Engine Technology Corp. released the details on its previously announced $1.5 million private placement of convertible notes.
The company sold the notes to Longview Fund LP, Longview Equity Fund LP and Longview International Equity Fund LP.
The two-year notes bear interest at the higher or 8% or Prime rate plus 400 basis points. The notes are convertible into common shares at a 30% discount to the average of the five lowest closing bid prices for the 20 trading days before conversion, with a $0.05 floor.
Energy & Engine received $1 million of the investment at the closing of the deal and will receive the remaining $500,000 five days after a registration statement is declared effective.
The investors will also receive warrants for all shares issuable upon conversion, exercisable at $0.12 each for five years. The investors also get 5 million warrants, exercisable at $0.20 each for five years.
Security Research Associates was the placement agent in the offering.
Based in Plano, Texas, Energy & Engine develops auxiliary power generators for the long-haul trucking industry. The proceeds will be used to acquire Anchor Manufacturing Group Inc.
| Issuer: | Energy & Engine Technology Corp.
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| Issue: | Convertible notes
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| Amount: | $1.5 million
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| Maturity: | Two years
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| Coupon: | The higher of 8% or Prime rate plus 400 basis points
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| Conversion price: | At a 30% discount to the average five lowest closing bid prices for 20 trading days before conversion, with a $0.05 floor
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| Warrants: | For 100% of the shares issuable upon conversion
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.12
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| Additional warrants: | For 5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.20
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| Placement agent: | Security Research Associates
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| Investors: | Longview Fund LP; Longview Equity Fund LP and Longview International Equity Fund LP
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| Settlement date: | April 27
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| Stock price: | $0.08 at close April 27
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