Investors also receive warrants for 1 million shares of parent company
By Angela McDaniels
Tacoma, Wash., Jan. 12 - Aemetis, Inc. subsidiary Aemetis Advanced Fuels Keyes, Inc. sold $3 million of 5% subordinated promissory notes to two accredited investors under purchase agreements reached on Jan. 6 and Jan. 9.
The investors also received five-year warrants exercisable for 1 million shares of Aemetis common stock. The exercise price is $0.001 per share, compared with the company's $0.72 closing share price on Thursday.
Interest on the notes is due at maturity, according to an 8-K filing with the Securities and Exchange Commission.
The maturity date is the earlier of Dec. 31, 2013, the completion of an equity financing by Aemetis Advanced or Aemetis in an amount of not less than $25 million, the completion of an initial public offering by Aemetis Advanced or Aemetis and after the occurrence of an event of default.
The notes are guaranteed by Aemetis.
Neither Aemetis Advanced nor Aemetis may make any principal payments under the notes until all loans made by Third Eye Capital to Aemetis Advanced are paid in full.
Aemetis is based in Cupertino, Calif., and makes industrial organic chemicals.
| Issuer: | Aemetis Advanced Fuels Keyes, Inc.
|
| Guarantor: | Aemetis, Inc.
|
| Issue: | Subordinated promissory notes
|
| Amount: | $3 million
|
| Maturity: | Earlier of Dec. 31, 2013, the completion of an equity financing for at least $25 million, the completion of an initial public offering and after the occurrence of an event of default
|
| Coupon: | 5%, payable at maturity
|
| Warrants: | For 1 million shares of Aemetis, Inc. stock
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.001
|
| Agreement dates: | Jan. 6 and Jan. 9
|
| Stock symbol: | Pink Sheets: AMTX
|
| Stock price: | $0.72 at close Jan. 12
|
| Market capitalization: | $65.05 million
|
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