Company sells $1.08 million of convertibles at discount to face value
By Angela McDaniels
Tacoma, Wash., Aug. 22 - Eco Building Products, Inc. sold $1.08 million principal amount of 0% senior secured convertible debentures due Nov. 13, 2012 to an investor for $1 million on Aug. 13.
Chardan Capital Markets acted as placement agent, according to an 8-K filing with the Securities and Exchange Commission.
The debentures are convertible into common stock at the option of the holder at any time. The conversion price is the lesser of (a) 80% of the average of the lowest three closing prices during the three trading days immediately prior to conversion and (b) $0.08, which is equal to the company's closing share price on Aug. 10.
The investor also purchased 3.5 million shares of common stock.
Eco Building Products is based in Vista, Calif. It manufactures and sells proprietary wood products.
| Issuer: | Eco Building Products, Inc.
|
| Issue: | Original-issue-discount senior secured convertible debentures
|
| Principal amount: | $1.08 million
|
| Price: | $1 million
|
| Maturity: | Nov. 13, 2012
|
| Coupon: | 0%
|
| Conversion price: | Lesser of $0.08 and 80% of average of lowest three closing prices during three trading days immediately prior to conversion
|
| Warrants: | No
|
| Agent: | Chardan Capital Markets
|
| Settlement date: | Aug. 13
|
| Stock symbol: | OTCBB: ECOB
|
| Stock price: | $0.08 at close Aug. 10
|
| Market capitalization: | $15.68 million
|
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