Investors also receive three-year warrants for 1,525,000 common shares
By Devika Patel
Knoxville, Tenn., Aug. 1 – Eco-Shift Power Corp. settled a $215,000 tranche of a $750,000 private placement of 8% convertible promissory notes on July 18, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $150,000 on July 2.
The notes mature in one year and are convertible into common shares at $0.15 per share, which represents a 62.5% discount to the $0.40 closing share price on July 1. The notes may be prepaid.
The investors also received three-year warrants for 450,000 common shares in the first tranche and warrants for 1,075,000 shares in the second tranche, which are each exercisable at $0.25, a 37.5% discount to the July 1 closing price.
WestPark Capital, Inc. was paid a $15,000 commission for the first tranche and $38,000 for the second.
The Cambridge, Ont., company sells and distributes specialty, energy efficient lighting products.
| Issuer: | Eco-Shift Power Corp.
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| Issue: | Convertible promissory notes
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| Amount: | $750,000
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| Maturity: | One year
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| Coupon: | 8%
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| Conversion price: | $0.15
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| Call: | Yes
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| Warrants: | For 1,525,000 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.25
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| Settlement date: | July 2 (for $150,000), July 18 (for $215,000)
|
| Stock symbol: | Pink Sheets: ECOP
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| Stock price: | $0.40 at close July 1
|
| Market capitalization: | $17.6 million
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