By Devika Patel
Knoxville, Tenn., June 6 - Environmental Solutions Worldwide Inc. announced in an 8-K filed Friday with the Securities and Exchange Commission that it has secured a $1.5 million credit facility with Bengt Odner, a company director and shareholder, effective June 2.
The facility matures on Dec. 31, 2008.
All drawdowns must be approved by Odner. Once a drawdown is approved, it will be represented by a 9% unsecured subordinated demand promissory note. The company may repay the note at anytime without penalty.
At the holder's option, the note's principal and interest may be repaid in restricted common stock, in lieu of cash. Should the noteholder elect to receive stock, interest on principal will be calculated at a rate of 12% per annum.
The number of common shares the company will issue as interest and principal will be determined by dividing the principal and accrued interest by the greater of 105% of the 20-day average closing price of the company's common stock immediately preceding the date the holder elects to have the note satisfied with common stock or the closing price on that date, provided that the conversion price is never lower than the fair market price of the company's common stock on that date.
At closing, the company requested a $500,000 drawdown, which was approved, and Odner received a $500,000 note in exchange for the funds.
Proceeds will be used for general working capital purposes.
Based in Telford, Pa., Environmental Solutions develops pollution-control products for the automotive and industrial markets.
Issuer: Environmental Solutions Worldwide Inc.
| Issue: | Credit facility
|
| Amount: | $1.5 million
|
| Tenor: | Dec. 31, 2008
|
| Coupon: | 9%
|
| Warrants: | No
|
| Investor: | Bengt Odner
|
| Settlement date: | June 2
|
| Stock symbol: | OTCBB: ESWW
|
| Stock price: | $0.27 at close June 2
|
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