By Angela McDaniels
Tacoma, Wash., April 17 - Beacon Energy Holdings, Inc. issued $1.5 million of 15% three-year senior secured notes in a private placement, according to an 8-K filed with the Securities and Exchange Commission Thursday.
Both principal and interest are due on the maturity date, which is April 10, 2012.
The notes are secured by a lien and security interest on Beacon's Cleburne, Texas, biodiesel production facility.
The investors also received warrants for 3,788,888 shares, or 10%, of the company's common stock. They are exercisable at $0.01 per share through April 10, 2019.
Beacon Energy said it was assisted by Argentum Group, which structured the notes and warrants and led the group of investors who participated in the financing. The investors also included the company's chairman.
The proceeds will be used for general corporate and working capital purposes, including the ramp up of production at the Cleburne facility.
Beacon Energy makes biodiesel fuel and is based in Cranford, N.J.
| Issuer: | Beacon Energy Holdings, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $1.5 million
|
| Coupon: | 15%, payable at maturity
|
| Maturity: | April 10, 2012
|
| Warrants: | For 3,788,888 shares
|
| Warrant expiration: | April 10, 2019
|
| Warrant strike price: | $0.01
|
| Settlement date: | April 10
|
| Stock symbol: | OTCBB: BCOE
|
| Stock price: | $0.16 at close April 16
|
| Market capitalization: | $4.98 million
|
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