Deal includes 50% warrant coverage; warrants exercisable at $0.30753
By Devika Patel
Knoxville, Tenn., Feb. 10 - Terra Tech Corp. settled an $800,000 tranche of a $6.55 million private placement of 12% original issue discount senior secured convertible promissory notes with Dominion Capital LLC on Feb. 5, according to an 8-K filed Monday with the Securities and Exchange Commission. The notes have a 5% original issue discount. The $842,105 of notes were sold for $800,000, and the total amount of $6.55 million will be raised by selling $6.89 million of notes.
The note is due on Aug. 5, 2015 and is convertible into common shares at a conversion price equal to 90% of the 20-day volume-weighted average price of the stock up to Feb. 5, or about $0.30753 per share. The notes may be prepaid at 125.
Dominion Capital also will receive 50% warrant coverage. Each of the four-year warrants is exercisable at 90% of the 20-day volume-weighted average price of the stock up to Feb. 5, or about $0.30753 per share.
The conversion price and strike price of about $0.30753 per share is a 43.05% discount to the Feb. 4 closing share price of $0.54.
Terra Tech is an Irvine, Calif., company that specializes in controlled agricultural technologies.
| Issuer: | Terra Tech Corp.
|
| Issue: | Original issue discount senior secured convertible promissory note
|
| Amount: | $6,894,737
|
| Maturity: | Aug. 5, 2015
|
| Coupon: | 12%
|
| Price: | $6.55 million
|
| Conversion price: | 90% of the 20-day volume-weighted average price of the stock up to Feb. 5, or about $0.30753 per share
|
| Call: | At 125
|
| Warrants: | 50% coverage (for 1,369,277 shares in first tranche)
|
| Warrant expiration: | Four years
|
| Warrant strike price: | 90% of the 20-day volume-weighted average price of the stock up to Feb. 5, or about $0.30753 per share
|
| Investor: | Dominion Capital LLC
|
| Settlement date: | Feb. 5 (for $800,000)
|
| Stock symbol: | OTCBB: TRTC
|
| Stock price: | $0.54 at close Feb. 4
|
| Market capitalization: | $56.15 million
|
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