Convertible preferreds sold in brokered deal with 50% warrant coverage
By Devika Patel
Knoxville, Tenn., April 5 - Axion International Holdings, Inc. settled a second tranche of a $3.45 million private placement of convertible preferred shares on April 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company raised $1.57 million in the brokered offering on March 22 and $1.88 million in the latest closing.
The 10% preferreds, which have a stated value of $10.00 apiece, are convertible into common stock at $1.25 per share, a 13.19% discount to the March 21 closing share price of $1.44. The securities may be put by the investor after three years.
Investors may receive 50% warrant coverage. The warrants are exercisable at $1.00 until Dec. 31, 2015. The strike price is a 30.56% discount to the March 21 closing share price.
Axion is an independent oil and gas enterprise based in Basking Ridge, N.J.
| Issuer: | Axion International Holdings, Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $3,446,230
|
| Price: | $10.00
|
| Conversion price: | $1.25
|
| Dividends: | 10%
|
| Put: | After three years
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Dec. 31, 2015
|
| Warrant strike price: | $1.00
|
| Settlement date: | March 22 (for $1,564,980), April 1 (for $1,881,250)
|
| Stock symbol: | OTCBB: AXIH
|
| Stock price: | $1.49 at close March 22
|
| Market capitalization: | $31.46 million
|
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