Proceeds used to hire additional staff, for research and development
By Devika Patel
Knoxville, Tenn., Nov. 29 - Abtech Holdings Inc. said it completed a $4 million private placement of 12% secured convertible promissory notes. Middlebury Securities, LLC was the agent.
Each note is due in nine months and is convertible into common shares at $0.70 per share, which represents a 52.17% premium to $0.46, the Nov. 28 closing share price.
Investors also received 40% warrant coverage. Each of the five-year warrants is exercisable at $0.60, which is also a 30.43% premium to the Nov. 28 closing price.
Proceeds will be used to hire additional engineers and regional field taskforce personnel to support the nationwide rollout of the company's storm water program and to develop other business opportunities. Proceeds also will be used for research and development efforts to develop additional vertical opportunities with the patented Smart Sponge technology and for other water treatment systems.
"We have accomplished material milestones, year-to-date," company founder, president and chief executive officer Glenn R. Rink said in a press release. "We strategically simplified our organization and remodeled our distribution channels; signed Waste Management as our first distribution partner under our new structure and, in November, began the rollout in California, Canada and Southeast U.S.; strengthened our management team and board of directors and continued the evolution of our core technology to include nuclear wastewater treatment, as well as oil and gas on-site produced water and frac water treatment.
"While we originally intended to conduct a smaller financing now and complete a much larger follow-on offering in 2012, strong investor demand persuaded us to accept a larger amount now, which enables us to hire additional technical sales and support sooner and continue efforts to expand our addressable market. The capital we received from this raise will further assist the transition of Abtech from a research and development entity into a commercialized growth company."
The Scottsdale, Ariz., company develops clean technology products and services.
| Issuer: | Abtech Holdings Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $4 million
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| Maturity: | Nine months
|
| Coupon: | 12%
|
| Conversion price: | $0.70
|
| Warrants: | 40% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
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| Agent: | Middlebury Securities, LLC
|
| Settlement date: | Nov. 29
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| Stock symbol: | OTCBB: ABHD
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| Stock price: | $0.46 at close Nov. 28
|
| Market capitalization: | $21.11 million
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