Shares issued in placement come with one year of price protection
By Angela McDaniels
Tacoma, Wash., May 2 – OriginClear, Inc. issued 17.5 million shares of common stock to accredited investors for $175,000, or $0.01 per share, on April 26, according to an 8-K filing with the Securities and Exchange Commission.
The price per share is 50% of the company’s closing share price on April 22.
The shares issued in the offering are subject to price protection. If $0.03 is greater than the market price of the company’s shares on the one-year anniversary of the placement, then the company will issue additional shares to the investor, for no additional consideration, in an amount equal to (i) the quotient of $525,000 divided by the market price minus (ii) 17.5 million.
The market price is defined as the average closing price of the company’s common stock for the 20 consecutive trading days immediately prior to the anniversary date, but not less than $0.01 per share.
In addition, holders of convertible promissory notes converted $71,211 of principal and interest into 8,377,760 shares of the company’s common stock on April 28.
Los Angeles-based OriginClear makes water treatment solutions.
| Issuer: | OriginClear, Inc.
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| Issue: | Common stock
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| Amount: | $175,000
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| Shares: | 17.5 million
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| Price: | $0.01
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| Warrants: | No
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| Settlement date: | April 26
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| Stock symbol: | OTCBB: OOIL
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| Stock price: | $0.02 at close April 22
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| Market capitalization: | $5.85 million
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