By Devika Patel
Knoxville, Tenn., May 22 - Essential Innovations Technology Corp. settled a $1.75 million private placement of a convertible promissory note with Valens Offshore SPV II, Corp. on May 16, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The note carries an 11% coupon and is payable in 24 equal monthly payments beginning on Nov. 1.
The note is convertible into common stock at any time with a conversion price of $0.10 per share.
Valens also received warrants for up to 3.5 million common shares. The warrants are exercisable at $0.001 for 20 years.
Proceeds were used to pay down approximately $1.35 million in debt owed to Laurus Master Fund Ltd., an affiliate of Valens. The remaining funds were used to cover fees, to purchase raw materials, to structure an interest escrow account for service of the note and for working capital.
Based in Bellingham, Wash., Essential Innovations develops water treatment technologies.
| Issuer: | Essential Innovations Technology Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $1.75 million
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Conversion price: | $0.10
|
| Warrants: | For 3.5 million shares
|
| Warrant expiration: | 20 years
|
| Warrant strike price: | $0.001
|
| Investor: | Valens Offshore SPV II, Corp.
|
| Settlement date: | May 22
|
| Stock symbol: | OTCBB: ESIVE
|
| Stock price: | $0.06 at close May 21
|
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