EnergyConnect revises terms of $5 million convertible credit facility

By Devika Patel

Knoxville, Tenn., Dec. 29 - EnergyConnect Group, Inc. said it has negotiated an agreement with investor Aequitas Commercial Finance, LLC to amend a $5 million convertible secured note credit facility.

Under the amendment, the maturity date was extended to Feb. 24, 2012, the interest rate will be reduced to 25% from 30% and the permitted conversion percentage will increase to 100% of the unpaid principal and interest from two-thirds of the principal and interest at an exercise price of $0.096 per share.

"We are pleased with the support Aequitas has shown EnergyConnect and our business model," EnergyConnect president and chief executive officer Kevin R. Evans said in a press release. "This extension of the facility is expected to provide the necessary working capital to support our business into 2012."

Based in Lake Oswego, Ore., EnergyConnect provides a range of demand response services to the electric power industry.

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