By Sheri Kasprzak
New York, Jan. 11 - EarthShell Corp. said it completed a $4.5 million private placement of convertible debentures.
The 12% debentures mature in three years and are convertible into shares at the lesser of $3.00 or 88% of the average of the two lowest volume-weighted average price for the 10 trading days before conversion.
The debentures were purchased by Cornell Capital Partners, LP.
They are redeemable at a 10% premium to the principal being redeemed plus interest.
Cornell received warrants for 350,000 shares, exercisable at $4.00 each for two years.
Based in Santa Barbara, Calif., EarthShell licenses technologies used in the manufacture of foodservice packaging.
| Issuer: | EarthShell Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $4.5 million
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | The lesser of $3.00 or 88% of the average of the two lowest volume-weighted average price for the 10 trading days before conversion
|
| Call: | Redeemable at 10% premium plus interest
|
| Warrants: | For 350,000 shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $4.00
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | Jan. 6
|
| Stock symbol: | OTCBB: ERTH
|
| Stock price: | $2.04 at close Jan. 6
|
| Stock price: | $1.85 at close Jan. 11
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