Quantum Fuel sells $3.3 million, not $3.4 million, of notes in sale

Offer consists of 10% convertible notes, warrants for 2,378,205 shares

By Devika Patel

Knoxville, Tenn., Oct. 28 - Quantum Fuel Systems Technologies Worldwide, Inc. raised $3.3 million, not $3.4 million, in the third tranche of a private placement of 10% convertible promissory notes on Oct. 21, according to an 8-K filed Friday with the Securities and Exchange Commission. The company erroneously reported the larger number in an 8-K on the settlement date. It raised $1.95 million on Sept. 29 and $1.86 million on Oct. 12, for a total of $7.11 million.

The notes are due in one year and convert to common stock. The first-tranche notes have a conversion price of $2.124 per share, and the second-tranche notes convert to shares at $1.98 per share. The conversion prices are a 10% discount and a 16.1% discount to $2.36, the Sept. 28 closing share price, respectively. The third-tranche conversion price of $2.7727 is a 17.49% premium to the Sept. 28 closing share price.

Investors also received five-year warrants for 550,703 shares in the first tranche, which are each exercisable at $2.60. The second tranche included warrants for 564,348 shares, each exercisable at $2.42. The strike prices are a 10.17% premium and 2.54% premium to the Sept. 28 closing share price, respectively. The third tranche included warrants for 1,263,154 shares, each of which is exercisable at $2.64, an 11.86% premium to the Sept. 28 closing price.

Proceeds will be used for general working capital purposes and debt repayment.

Quantum Fuel is an engineering company based in Irvine, Calif.

Issuer:	Quantum Fuel Systems Technologies Worldwide, Inc.
Issue:	Convertible promissory notes
Amount:	$7.11 million
Maturity:	One year
Coupon:	10%
Conversion price:	$2.124 (for $1.95 million of notes), $1.90 (for $1.86 million of notes), $2.7727 (for $3.3 million of notes)
Warrants:	For 2,378,205 shares
Warrant expiration:	Five years
Warrant strike price:	$2.60 (for 550,703 shares), $2.42 (for 564,348 shares), $2.64 (for 1,263,154 shares)
Settlement date:	Sept. 29 (for $1.95 million), Oct. 12 (for $1.86 million), Oct. 21 (for $3.3 million)
Stock symbol:	Nasdaq: QTWW
Stock price:	$2.33 at close Sept. 29
Market capitalization:	$37.61 million

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