By Devika Patel
Knoxville, Tenn., March 2 - Converted Organics Inc. said it will take in $1.5 million in a private placement of a 10% convertible note, sold at a 10% original issue discount.
The investor has agreed to place funds into escrow to acquire $500,000 of the note and will acquire additional $250,000 increments of the note on May 1, June 1, July 1 and Aug. 1.
The note will be convertible at a rate of 85% of the closing bid price of the company's common stock for the trading day immediately preceding the conversion.
The note will mature one year from the date the escrowed funds are released to the company.
As consideration for the financing, the company will issue the investor class B warrants, which may be exercised at $11.00.
Boston-based Converted Organics is focused on producing fertilizer and soil amendment products by recycling food waste.
| Issuer: | Converted Organics Inc.
|
| Issue: | Convertible note
|
| Amount: | $1.5 million
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Price: | 90
|
| Conversion price: | 85% discount to the closing price of the company's common stock preceding conversion
|
| Warrants: | Yes
|
| Warrant strike price: | $11.00
|
| Pricing date: | March 2
|
| Stock symbol: | Nasdaq: COIN
|
| Stock price: | $1.27 at close Feb. 27
|
| Market capitalization: | $5.7 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
