By Devika Patel
Knoxville, Tenn., June 13 - Turbine Truck Engines Inc. offered more details on a $5 million private placement of 7¾% convertible debentures with Golden Gate Investors Inc. in an 8-K filed Friday with the Securities and Exchange Commission.
The note matures June 30, 2012. Interest is payable monthly.
The conversion price is equal to the lesser of $0.50 and 80% of the average of the three lowest volume weighted average prices during the 20 trading days prior to the conversion date.
The company said it has already issued $1 million in debentures on June 6 for $100,000 in cash and a $900,000 8% secured promissory note. Golden Gate may only convert the amount of the debentures that has been paid for in cash or principal payments on the promissory note, which matures June 30, 2012 as well.
Proceeds will be used for working capital.
Based in Deland, Fla., Turbine Truck Engines manufactures and markets heavy duty highway truck engines.
| Issuer: | Turbine Truck Engines Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $5 million
|
| Maturity: | June 30, 2012
|
| Coupon: | 7¾%
|
| Conversion price: | Lesser of $0.50 and 80% of the average of the three lowest volume weighted average prices during the 20 trading days prior to the conversion date
|
| Price: | Par
|
| Yield: | 7¾%
|
| Warrants: | No
|
| Investor: | Golden Gate Investors Inc.
|
| Pricing date: | June 6
|
| Settlement date: | June 6 (for $1 million)
|
| Stock symbol: | OTCBB: TTEG
|
| Stock price: | $0.20 at close June 6
|
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