Proceeds used to hire additional staff, for research and development
By Devika Patel
Knoxville, Tenn., Feb. 16 - Abtech Holdings Inc. said it raised another $2.6 million in a private placement of 12% secured convertible promissory notes. Middlebury Securities, LLC was the agent for the deal, which raised $4 million on Nov. 29 for a total of $6.6 million.
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 33.33% premium to the Sept. 22 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.
The Scottsdale, Ariz., company develops clean technology products and services.
| Issuer: | Abtech Holdings Inc.
|
| Issue: | Secured convertible promissory notes
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| Amount: | $6.6 million
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| Maturity: | Nine months
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| Coupon: | 12%
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| Conversion price: | $0.70
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| Warrants: | 40% coverage
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.60
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| Agent: | Middlebury Securities, LLC
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| Settlement dates: | Nov. 29 (for $4 million), Feb. 16 (for $2.6 million)
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| Stock symbol: | OTCBB: ABHD
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| Stock price: | $0.46 at close Nov. 28
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| Market capitalization: | $37.53 million
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