By Sheri Kasprzak
Atlanta, Jan. 24 - O2Diesel Corp. said it has closed a $2 million private placement of stock.
The company sold 2,857,143 shares at $0.70 each.
The investor, a foreign investment firm, will also receive two-year warrants for 1,428,571 shares at $0.70 each for the first year and $1.05 each for the second year.
The deal also comes with additional investment rights for up to $3 million in shares for six months. The shares sold under the additional investment rights are priced at a 10% discount to the market price at the time the shares are bought. The investment rights include warrants equal to 50% of the shares purchased at 100% of the purchase price.
The warrants associated with this portion of the deal also expire in two years.
Based in Newark, Del., O2Diesel develops cleaner-burning diesel fuel alternatives.
| Issuer: | O2Diesel Corp.
|
| Issue: | Stock
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| Amount: | $2 million
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| Shares: | 2,857,143
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| Price: | $0.70
|
| Warrants: | For 1,428,571 shares
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| Warrant expiration: | Two years
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| Warrant strike price: | $0.70 for the first year; $1.05 for the second year
|
| AIRs: | Up to $3 million in shares for six months
|
| Settlement date: | Jan. 21
|
| Stock price: | $0.83 at close Jan. 21
|
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