Deal sells note with five-year warrants for 8,695,652 common shares
By Devika Patel
Knoxville, Tenn., June 9 – Ecosphere Technologies, Inc. settled a $500,000 private placement of 10% convertible promissory notes with Brisben Water Solutions, LLC on June 3, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The note is due Dec. 15, 2017. The notes convert to Ecosphere stock at $0.115 per share, a 64.29% premium to the June 2 closing share price of $0.07.
Brisben also received five-year warrants for 8,695,652 common shares. Each warrant is exercisable at $0.045, which is a 35.71% discount to the June 2 closing share price.
The lender also agreed to extend the maturity of $2.9 million of prior loans to Dec. 15, 2017. Additionally, the company reduced the exercise price of 51,066,847 warrants held by the investor to $0.045 per share from $0.115 per share and extended the expiration date of the warrants to June 3, 2021.
In addition, the company and four holders of $2 million of the company’s convertible notes agreed to extend the maturity of the notes to Dec. 15, 2017 from Dec. 15, 2016. Additionally, the company reduced the exercise price of 18,333,331 warrants held by the investors to $0.045 per share from $0.115 per share and extended the expiration date of the warrants to June 3, 2021.
Based in Stuart, Fla., Ecosphere develops products to decrease the emissions of contaminated residue into the air, ocean and other water systems.
| Issuer: | Ecosphere Technologies, Inc.
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| Issue: | Secured convertible promissory notes
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| Amount: | $500,000
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| Maturity: | Dec. 15, 2017
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| Coupon: | 10%
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| Conversion price: | $0.115
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| Conversion premium: | 187.5%
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| Warrants: | For 8,695,652 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.045
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| Investor: | Brisben Water Solutions, LLC
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| Settlement date: | June 3
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| Stock symbol: | OTCBB: ESPH
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| Stock price: | $0.07 at close June 2
|
| Market capitalization: | $12.63 million
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