By Sheri Kasprzak
New York, Jan. 16 - Kredio Laboratories, now operating as Kreido Biofuels, Inc., settled a private placement as part of its merger with Gemwood Productions, Inc.
Kreido sold 18,518,519 units at $1.35 each to a group of institutional and accredited investors led by Wellington Asset Management. The units were sold at a 51% discount to the company's $2.75 closing stock price on Jan. 12.
The units consist of one share and one warrant. Each warrant is exercisable at $1.85 for five years.
Sanders Morris Harris, Inc. was the placement agent for the deal.
Also connected to the merger, holders of $370,004 in unsecured promissory notes agreed to convert their notes into units of one share and one warrant at $1.35 each. The zero-coupon notes had been due Jan. 10, 2007.
Under the terms of the merger, the holders of Kreido's stock surrendered their shares and received shares of Kreido Biofuels.
Based in Camarillo, Calif., Kreido develops and manages biodiesel plants.
| Issuer: | Kreido Biofuels, Inc.
|
| Issue: | Units of one share and one warrant
|
| Amount: | $25 million
|
| Units: | 18,518,519
|
| Price: | $1.35
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.85
|
| Placement agent: | Sanders Morris Harris, Inc.
|
| Investors: | Wellington Asset Management (lead)
|
| Settlement date: | Jan. 12
|
| Stock symbol: | OTCBB: KRBF
|
| Stock price: | $2.75 at close Jan. 12
|
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