By Sheri Kasprzak
New York, April 12 - Startech Environmental Corp. received a $10 million standby equity distribution agreement from Cornell Capital Partners, LP.
Under the line, Cornell may buy shares of Startech at 96% of the lowest closing bid price for the five trading days after notice of a draw.
Cornell also received class A warrants for 833,333 shares, exercisable at $3.40 each for four years and class B warrants for 833,333 shares, exercisable at $4.40 each for four years.
The investor also purchased 833,333 restricted shares at $2.40 each for proceeds of $2 million.
Newbridge Securities Corp. was the placement agent.
Based in Wilton, Conn., Startech develops a recycling system for hazardous materials.
Equity distribution agreement
| Issuer: | Startech Environmental Corp.
|
| Issue: | Standby equity distribution agreement
|
| Amount: | $10 million
|
| Price: | 96% of the lowest closing bid price for the five trading days after notice of a draw
|
| Warrants: | Class A for 833,333 shares, class B for 833,333 shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $3.40 for class A; $4.40 for class B
|
| Investor: | Cornell Capital Partners, LP
|
| Placement agent: | Newbridge Securities Corp.
|
| Settlement date: | April 11
|
| Stock symbol: | OTCBB: STHK
|
| Stock price: | $2.95 at close April 11
|
|
|
| Stock sale
|
| Issuer: | Startech Environmental Corp.
|
| Issue: | Stock
|
| Amount: | $2 million
|
| Shares: | 833,333
|
| Price: | $2.40
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | April 11
|
| Stock symbol: | OTCBB: STHK
|
| Stock price: | $2.95 at close April 11
|
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