By Sheri Kasprzak
Atlanta, April 19 - Chapeau Inc. said it will sell up to $2.5 million in convertible bonds to Calim Private Equity, LLC.
The series B convertible bonds mature March 31, 2010 and accrue interest at 12% annually.
The company may prepay on the bonds at any time after May 1, 2007.
The bonds are convertible into units at $0.30 each. The units include one share and one warrant. The warrants are exercisable at $0.50 each for two years.
Chapeau issued $1.27 million of the bonds as repayment of outstanding advances to Calim. The remaining $1.23 million will be issued to fund development.
Based in Sparks, Nev., Chapeau is the parent company of BluePoint Energy, a company that designs, assembles and sells power generation systems to utilities and energy service companies.
| Issuer: | Chapeau Inc.
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| Issue: | Series B convertible bonds convertible into units of one share and one warrant
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| Amount: | $2.5 million
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| Maturity: | March 31, 2010
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| Coupon: | 12%
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| Price: | Par
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| Yield: | 12%
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| Conversion price: | $0.30
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| Call: | May be prepaid any time after May 1, 2007
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| Warrants: | One warrant per unit issuable upon conversion
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| Warrant expiration: | Two years
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| Warrant strike price: | $0.50
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| Investors: | Calim Private Equity, LLC
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| Settlement date: | April 14
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| Stock price: | $0.23 at close April 14
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