Proceeds used to repay $2.3 million of short-term debt, for operations
By Devika Patel
Knoxville, Tenn., Dec. 10 - Abtech Holdings Inc. said it completed a $3.5 million private placement of 6.5% senior secured convertible promissory notes. Axiom Capital Management, Inc. was the agent.
Each note is due in two years and is convertible into common shares at $0.53 per share, which represents a 3.64% discount to $0.55, the Dec. 9 closing share price.
Investors also received 20% warrant coverage. Each of the five-year warrants is exercisable at $0.70, which is also a 27.27% premium to the Dec. 9 closing price.
Proceeds will be used to eliminate $2.3 million of short-term debt, for operations and to pursue business development initiatives.
The Scottsdale, Ariz., company develops clean technology products and services.
| Issuer: | Abtech Holdings Inc.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $3.5 million
|
| Maturity: | Two years
|
| Coupon: | 6.5%
|
| Conversion price: | $0.53
|
| Warrants: | 20% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.70
|
| Agent: | Axiom Capital Management, Inc.
|
| Settlement date: | Dec. 10
|
| Stock symbol: | OTCBB: ABHD
|
| Stock price: | $0.55 at close Dec. 9
|
| Market capitalization: | $36.97 million
|
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