Notes sold in two closings with five-year warrants for 530,000 shares
By Devika Patel
Knoxville, Tenn., April 21 – Abtech Holdings, Inc. sold $950,000 of 7.5% promissory notes in a private placement on March 23 and another $1.2 million of 7.5% notes to Golden Properties Ltd. along with $250,000 of notes to other investors in a second private placement in March and April, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The March notes mature on March 23, 2016 and the Golden Properties notes mature on July 13, 2015.
Investors also received five-year warrants for a total of 530,000 common shares, with warrants for 475,000 shares issued in the March placement and warrants for 55,000 shares issued in the Golden Properties placement.
The March warrants are each exercisable at $0.315 and the Golden Properties warrants are each exercisable at $0.298. The strike prices are 16.67% and 10.37% premiums to the April 21 closing share price of $0.27.
The maturities of both notes may be extended, in which case the coupons will be increased to 11.5% and investors will receive another 10% of warrant coverage.
The Scottsdale, Ariz., company develops clean technology products and services.
| Issuer: | Abtech Holdings, Inc.
|
| Issue: | Promissory notes
|
| Amount: | $2.4 million
|
| Coupon: | 7.5%
|
| Warrants: | For 530,000 shares
|
| Warrant expiration: | Five years
|
| Announcement date: | April 21
|
| Stock symbol: | OTCBB: ABHD
|
| Stock price: | $0.27 at close April 21
|
| Market capitalization: | $17.14 million
|
|
|
| March notes
|
| Amount: | $950,000
|
| Maturity: | March 23, 2016
|
| Warrants: | For 475,000 shares
|
| Warrant strike price: | $0.315
|
| Settlement date: | March 23
|
|
|
| Golden Properties notes
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| Amount: | $1.45 million
|
| Maturity: | July 13, 2015
|
| Warrants: | For 55,000 shares
|
| Warrant strike price: | $0.298
|
| Investor: | Golden Properties Ltd. (for $1.2 million)
|
| Settlement date: | In March and April
|
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