By Sheri Kasprzak
New York, April 4 - McKenzie Bay International, Ltd. said it will conclude a private placement with Cornell Capital Partners, LP for $1.5 million.
Cornell agreed to buy 10% secured convertible debentures.
The two-year debentures are convertible into shares at the lesser of $0.75 or a 20% discount to the lowest closing bid prices of the company's stock for the five trading days before conversion.
McKenzie may prepay the debentures if the stock trades below $0.75 at a 20% premium to the principal amount being repaid.
Cornell will receive warrants for 5 million shares, exercisable at $0.75 each for five years.
Spencer Clarke, LLC was the placement agent.
Based in Ada, Mich., McKenzie Bay develops wind-powered electricity generating systems.
| Issuer: | McKenzie Bay International, Ltd.
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| Issue: | Secured convertible debentures
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| Amount: | $1.5 million
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| Maturity: | Two years
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | The lesser of $0.75 or a 20% discount to the lowest closing bid prices for the five trading days before conversion
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| Warrants: | For 5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.75
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| Investor: | Cornell Capital Partners, LP
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| Placement agent: | Spencer Clarke, LLC
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| Announcement date: | April 4
|
| Stock symbol: | OTCBB: MKBY
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| Stock price: | $0.782 at close April 4
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