Company sells original issue discount convertible notes with warrants
By Devika Patel
Knoxville, Tenn., May 2 - ZBB Energy Corp. arranged a private placement of $2.47 million of convertible subordinated notes on May 1, according to an 8-K filed Wednesday with the Securities and Exchange Commission. MDB Capital Group, LLC is the agent.
The notes will be issued to investors with an initial principal equal to the investors' subscription amount times 110%. The 0% notes are due Aug. 31, 2012 and will convert to common shares at $0.53 per share.
In addition, the investors received 55% warrant coverage. The warrants are each exercisable at $0.53 for 54 months.
The conversion price and strike price are identical to the May 1 closing share price.
Settlement is expected on May 7.
Proceeds will be used to meet the company's working capital needs and used for general corporate purposes.
Based in Bibra Lake, Western Australia, ZBB develops energy storage technologies.
| Issuer: | ZBB Energy Corp.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $2,465,000
|
| Maturity: | Aug. 31, 2012
|
| Price: | $2,240,909
|
| Coupon: | 0%
|
| Conversion price: | $0.53
|
| Warrants: | For 3,052,500 shares
|
| Warrant expiration: | 54 months
|
| Warrant strike price: | $0.53
|
| Agent: | MDB Capital Group, LLC
|
| Pricing date: | May 1
|
| Settlement date: | May 7
|
| Stock symbol: | Amex: ZBB
|
| Stock price: | $0.56 at close April 30
|
| Market capitalization: | $18.86 million
|
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