By Devika Patel
Knoxville, Tenn., Oct. 16 - O2Diesel Corp. has negotiated a $1 million loan agreement with KL Energy Corp. on Oct. 9, according to an 8-K filed Thursday with the Securities and Exchange Commission by KL Energy.
The loan will be funded in tranches. The company has already taken in $250,000.
The loan is evidenced by a promissory note, which bears interest at 10% and matures March 31, 2009. It may be converted into common stock at a conversion rate equal to the price of the O2Diesel's stock on the maturity date.
Proceeds will be used for working capital.
Based in Newark, Del., O2Diesel produces a diesel fuel alternative.
| Issuer: | O2Diesel Corp.
|
| Issue: | Loan evidenced by promissory note
|
| Amount: | $1 million
|
| Maturity: | March 31, 2009
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | No
|
| Investor: | KL Energy Corp.
|
| Settlement date: | Oct. 9 (for $250,000)
|
| Stock symbol: | OTCBB: OTOD
|
| Stock price: | $0.06 at close Oct. 9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
