By Sheri Kasprzak
Atlanta, Nov. 12 - Kronos Advanced Technologies Inc. has received a $20 million standby equity agreement from Cornell Capital Partners, the company said Friday.
On Oct. 15, Kronos had sold 5 million shares of its restricted common stock to Cornell as part of the agreement. For each share, Cornell will pay 98% of the lowest volume weighted average price of the company's common stock traded on the over-the-counter bulletin board for five days after the notice date.
Cornell will retain 5% of each advance. Kronos is limited to $1.5 million per advance, and seven trading days must separate each requested advance.
Newbridge Securities Corp. acted as financial adviser in the deal.
Cornell has also agreed to lend Kronos $4 million pursuant to two equity-backed promissory notes, each for $2 million. The amount of each note is payable weekly at $50,000 plus 12% interest.
Kronos is a Belmont, Mass.-based air-purification company.
| Issuer: | Kronos Advanced Technologies Inc.
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| Issue: | Standby equity agreement
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| Amount: | $20 million
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| Price: | 98% of the lowest volume weighted average price of stock for five trading days
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| Warrants: | No
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| Financial adviser: | Newbridge Securities Corp.
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| Investor: | Cornell Capital Corp.
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| Announcement date: | Nov. 12
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| Settlement date: | Oct. 15
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| Stock price: | $0.16 at close Oct. 15
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| Stock price: | $0.145 at close Nov. 12
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