By Sheri Kasprzak
New York, May 26 - World Waste Technologies, Inc. concluded a private placement of series B convertible preferred stock for $25 million in two tranches.
The company issued a total of 250,000 shares of the 8% preferreds at $100 each.
Each preferred share is convertible for up to five years into 40 common shares. If the preferreds are not converted by the fifth year, World Waste may redeem the securities.
Connected to the offering, the investors received warrants for 2.5 million shares, exercisable for five years at $2.75 each, a 37% discount to the company's $4.36 closing stock price on May 25.
Also, holders of $6.25 million in senior secured debentures have the option to exchange their debentures for shares of the preferred stock on a dollar-for-dollar basis. So far, the company expects $2.48 million of the debentures to be exchanged for 24,800 series B preferreds.
Thomas Weisel Partners, LLC; First Montauk Securities Corp. and Chadbourn Securities, Inc. were the placement agents.
The proceeds will be used for start-up operations and improvements at the company's initial facility in Anaheim, Calif. The rest will be used for preparations needed for additional facilities as well as for general corporate purposes.
Based in San Diego, World Waste converts municipal solid waste into reusable products.
| Issuer: | World Waste Technologies, Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $25 million
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| Dividends: | 8%
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| Shares: | 250,000
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| Price: | $100
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| Conversion ratio: | Each preferred into 40 common shares
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| Warrants: | For 2.5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.75
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| Placement agents: | Thomas Weisel Partners, LLC; First Montauk Securities Corp. and Chadbourn Securities, Inc.
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| Settlement date: | May 26
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| Stock symbol: | OTCBB: WDWT
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| Stock price: | $4.36 at close May 25
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