Company sells 8% convertibles to lone investor China Electric Vehicle
By Devika Patel
Knoxville, Tenn., Jan. 25 - ZAP settled a private placement of 8% senior secured convertible notes with China Electric Vehicle Corp. on Jan. 12, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The offering took in $19 million.
The note matures in 13 months and is convertible at any time into common shares at $0.25 per share and into capital stock at a conversion rate of 4,435 capital shares for each $1,000 of notes. Upon conversion, any accrued interest is waived. The conversion price is an 84.38% discount to the Jan. 11 closing share price of $1.60.
The investor also received a two-year warrant for 20 million shares, which is exercisable at $0.50 per share, a 68.75% discount to the Jan. 11 closing share price.
Based in Santa Rosa, Calif., ZAP develops environmentally friendly automotive and power systems.
| Issuer: | ZAP
|
| Issue: | Senior secured convertible note
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| Amount: | $19 million
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| Maturity: | 13 months
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| Coupon: | 8%
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| Conversion price: | $0.25 per common share
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| Conversion ratio: | 4,435 capital shares for each $1,000 of notes
|
| Warrants: | For 20 million shares
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| Warrant expiration: | Two years
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| Warrant strike price: | $0.50
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| Investor: | China Electric Vehicle Corp.
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| Pricing date: | Jan. 12
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| Stock symbol: | OTCBB: ZAAP
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| Stock price: | $1.50 at close Jan. 12
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| Market capitalization: | $201.28 million
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