By Devika Patel
Knoxville, Tenn., Feb. 17 - Medis Technologies Ltd. negotiated a $6 million line of credit agreement with Ascendiant Capital Group, LLC on Feb. 13, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Under the agreement's terms, Ascendiant is committed to purchase up to $6 million in common shares at a 10.5% discount to the volume weighted average price of the closing stock prices for the 10 trading days following a draw request.
Until Feb. 13, 2011, the maturity date, the company may make drawdowns on the line in exchange for shares. It must sell at least $3 million in shares to Ascendiant within one year.
The company may request a drawdown once every 10 trading days. There must be a minimum of two trading days between each drawdown request.
Medis Technologies is a New York-based maker of fuel cell batteries used in consumer and military electronics.
| Issuer: | Medis Technologies Ltd.
|
| Issue: | Line of credit
|
| Amount: | $6 million
|
| Tenor: | Feb. 13, 2011
|
| Price: | 10.5% discount to the 10-day VWAP
|
| Warrants: | No
|
| Investor: | Ascendiant Capital Group, LLC
|
| Pricing date: | Feb. 13
|
| Stock symbol: | Nasdaq: MDTL
|
| Stock price: | $0.44 at close Feb. 13
|
| Market capitalization: | $19.2 million
|
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