By Sheri Kasprzak
Atlanta, April 6 - EarthFirst Technologies Inc. said it has raised $8 million in a private placement of a secured convertible minimum borrowing note, a secured revolving note and a secured convertible term note.
Laurus Master Fund Ltd. bought a total of $3 million in principal of the term note and up to $5 million in borrowing and revolving notes. The investor received warrants for 11,162,790 shares at $0.23 for the first 5,581,395 shares and $0.28 for additional shares for seven years.
The notes mature March 30, 2008. The interest rate on the minimum borrowing note and the revolving note is equal to Prime rate plus 200 basis points with a 7% floor, and the interest rate on the term note is equal to Prime rate plus 250 basis points.
All of the notes are convertible into common shares at $0.19 each.
The term note is redeemable at 125% of the principal amount plus interest in the first year, 115% of the principal plus interest in the second year and 110% of the principal plus interest thereafter.
The borrowing note is redeemable at 103% of the principal plus interest in the first year, 102% plus interest in the second year and 101% plus interest thereafter.
Laurus also received an option to buy 24,570,668 common shares at $0.01 each for six years.
At closing, EarthFirst received $3 million from the term note and $3.3 million from the borrowing and revolving notes.
Based in Tampa, Fla., EarthFirst develops technologies to recycle and dispose of waste.
Term note
| Issuer: | EarthFirst Technologies Inc.
|
| Issue: | Secured convertible term note
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| Amount: | $3 million
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| Maturity: | March 30, 2008
|
| Coupon: | Prime rate plus 250 basis points
|
| Conversion price: | $0.19
|
| Call: | Redeemable at 125% of the principal amount plus interest in the first year, 115% plus interest in the second year and 110% plus interest thereafter
|
| Warrants: | For 11,162,790 shares
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| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.23 for 5,581,395 shares; $0.28 for the remainder
|
| Investor: | Laurus Master Fund Ltd.
|
| Settlement date: | March 30
|
| Stock price: | $0.23 at close March 30
|
|
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| Borrowing, revolving notes
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| Issuer: | EarthFirst Technologies Inc.
|
| Issue: | Secured convertible minimum borrowing note and a secured revolving note
|
| Amount: | $5 million (maximum)
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| Maturity: | March 30, 2008
|
| Coupon: | Prime rate plus 200 basis points, 7% floor
|
| Conversion price: | $0.19
|
| Call: | Borrowing note is redeemable at 103% of the principal plus interest in the first year, 102% plus interest in the second year and 101% plus interest thereafter
|
| Warrants: | See above
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| Investor: | Laurus Master Fund Ltd.
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| Settlement date: | March 30
|
| Stock price: | $0.23 at close March 30
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