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Ecotality again revises 8% convertibles agreement, defers payments
By Devika Patel
Knoxville, Tenn., May 18 - Ecotality Inc. once again amended the terms of its 8% convertible debentures on May 15, according to an 8-K filed Monday with the Securities and Exchange Commission. The company had previously amended the securities on March 5.
The debentures affected are the 8% senior secured convertible debentures, which were issued in November 2007, and the 8% secured convertible debentures, which were issued in December 2007.
The debentures are held by Enable Growth Partners LP, Enable Opportunity Partners LP, Pierce Diversified Strategy Master Fund LLC, Ena and BridgePointe Master Find Ltd.
The agreement was entered in order to restructure the company's equity, as well as establish an inducement for additional working capital, the filing said.
Most notably, the agreement defers all interest payments until Nov. 1. The first quarter's interest had previously been deferred to May 1.
The company will begin repaying principal on Jan. 1, in 10 equal payments.
The company obtained the investors' consent for it to obtain additional working capital through a $2.5 million sale of debentures, which will rank pari passu to the affected debentures. It will also seek shareholder approval to increase the authorized share capital.
The debentures' conversion price will remain unchanged at $0.06. It previously had been lowered in order to entice the investors to agree to the deferred interest payments.
All of the warrants issued to the investors will now be exercisable at $0.01 for five years from the issue date.
Ecotality is a renewable energy company in Scottsdale, Ariz.
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