By Devika Patel
Knoxville, Tenn., April 30 - Open Energy Corp. arranged a $3.5 million loan agreement with Quercus Trust, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
On April 30, Quercus funded $1.55 million to the company under the loan. From April 30 through June 30, the company may request additional advances in amounts of at least $200,000.
The loan is due on Oct. 30, and it may be prepaid in full at any time. The company is required to make partial prepayments on the loan under certain conditions.
Interest is payable in seven-year warrants, which are exercisable at $0.506 per share. The total number of warrants that may be issued, assuming the maximum amount of $3.5 million is lent, is 1,389,096, which the parties agreed is equal to an 18% coupon.
On April 30, the company issued warrants for 615,171 shares to Quercus after receiving the $1.55 million.
The loan is secured by a first-priority security interest in all of the company's inventory, accounts receivable and money and deposit accounts.
Open Energy is a renewable energy company based in Solana Beach, Calif.
| Issuer: | Open Energy Corp.
|
| Issue: | Loan
|
| Amount: | $3.5 million
|
| Maturity: | Oct. 30
|
| Coupon: | 18%, payable in warrants (up to 1,389,096 warrants)
|
| Price: | Par
|
| Warrants: | For up to 1,389,096 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.506
|
| Investor: | Quercus Trust
|
| Pricing date: | April 30
|
| Stock symbol: | OTCBB: OEGY
|
| Stock price: | $0.28 at close April 30
|
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