By Sheri Kasprzak
Atlanta, April 5 - Hybrid Fuel Systems Inc. said it has raised half of a $1.2 million private placement of convertible promissory notes.
The notes bear interest at Prime rate plus 300 basis points, with an 8% floor. The notes have a two-year maturity and are convertible into common shares at $0.55 each.
The investors also received class A warrants for 3,727,278 shares, exercisable at the lesser of $0.81 each or 101% of the closing bid price on the last trading day before the initial closing. The warrants expire in five years.
The second and final closing of the offering will take place five days after a registration statement if effective.
Based in Tampa, Fla., Hybrid commercializes retrofit systems to convert diesel engines to non-petroleum based fuels like natural gas. The proceeds will be used to complete the build-out of the company's new emissions lab in Atlanta.
| Issuer: | Hybrid Fuel Systems Inc.
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| Issue: | Convertible promissory notes
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| Amount: | $1.2 million
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| Maturity: | Two years
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| Coupon: | Prime rate plus 300 basis points, 8% floor
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| Conversion price: | $0.55
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| Warrants: | For 3,727,278 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | The lesser of $0.81 or 101% of the closing bid price on the last trading day before initial closing
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| Announcement date: | April 5
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| Stock price: | $0.725 at close April 5
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