Deal is comprised of 12% convertibles and warrants sold by agent Aegis
By Devika Patel
Knoxville, Tenn., March 2 – Terra Tech Corp. arranged a $3 million private placement of 12% 18-month convertible promissory notes on Feb. 27, according to an 8-K filed Monday with the Securities and Exchange Commission. Aegis Capital Corp. is the agent.
The purchase is expected to occur in six tranches, with the first $750,000 tranche having settled at pricing; each additional $450,000 tranche is expected to settle every 30th day.
The notes are convertible into common shares at 75% of the lowest volume weighted average price for the 20 days preceding the conversion date. They may be prepaid at 125.
Investors will also receive 25% warrant coverage. The four-year warrants are exercisable at 75% of the lowest volume weighted average price for the 20 days preceding settlement or $0.16.
The company agreed to pay $15,000 of the investors’ legal fees.
Proceeds will be used for general corporate purposes.
The Irvine, Calif., company specializes in controlled agricultural technologies.
| Issuer: | Terra Tech Corp.
|
| Issue: | Convertible promissory notes
|
| Amount: | $3 million
|
| Maturity: | 18 months
|
| Coupon: | 12%
|
| Conversion price: | 75% of the lowest volume weighted average price for the 20 days preceding the conversion date
|
| Call: | At 125
|
| Warrants: | 25% coverage
|
| Warrant expiration: | Four years
|
| Warrant strike price: | 75% of the lowest volume weighted average price for the 20 days preceding settlement or $0.16
|
| Agent: | Aegis Capital Corp.
|
| Fees: | $15,000
|
| Pricing date: | Feb. 27
|
| Settlement date: | Feb. 27 (for $750,000)
|
| Stock symbol: | OTCBB: TRTC
|
| Stock price: | $0.23 at close Feb. 26
|
| Market capitalization: | $45.47 million
|
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