Deal offers 4,615,385 common shares at $0.65 apiece, a 47.15% discount
By Devika Patel
Knoxville, Tenn., Jan. 3 - OriginOil Inc. settled a $289,800 tranche of a $3 million private placement of stock between Nov. 16 and Dec. 28, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced on July 31 and raised $216,700 on Aug. 10 and $258,744 on Oct. 11.
The company is selling 4,615,385 common shares at $0.65 apiece. It sold 333,387 shares in the first tranche, 398,068 shares in the second and 445,848 shares in the third tranche. The price per share is a 47.15% discount to the July 30 closing share price of $1.23.
Investors will also receive warrants for 18,461,540 shares. One-year warrants for 333,387 shares were issued in the first tranche, which are each exercisable at $0.65, also a 47.15% discount to the July 30 closing share price. The company issued three-year warrants for 155,000 shares in the second tranche, which are also exercisable at $0.65.
In the third tranche, the company issued three-year warrants for 416,309 shares and five-year warrants for 153,846 shares. These warrants are each exercisable at $0.65.
The Los Angeles company has developed a technology to produce a bio-fuel from algae through a cost-effective, high-speed manufacturing process to replace petroleum in various applications such as diesel, gasoline, jet fuel, plastics and solvents.
| Issuer: | OriginOil Inc.
|
| Issue: | Common stock
|
| Amount: | $3 million
|
| Shares: | 4,615,385
|
| Price: | $0.65
|
| Warrants: | For 18,461,540 shares
|
| Warrant expiration: | One year (for 333,387 shares), three years (for 571,309 shares), five years (for 153,846 shares)
|
| Warrant strike price: | $0.65
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 10 (for $216,700), Oct. 11 (for $258,744), Dec. 28 (for $289,800)
|
| Stock symbol: | OTCBB: OOIL
|
| Stock price: | $1.23 at close July 30
|
| Market capitalization: | $13.31 million
|
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