Convertibles sold along with five-year warrants for 4,097,016 shares
By Devika Patel
Knoxville, Tenn., April 16 - Ener-Core, Inc. said it plans a private placement of $4.6 million senior secured convertible notes to raise $4 million. Roth Capital Partners, LLC is the agent.
The notes are convertible into common stock at $0.67 per share. The notes mature in October 2015.
The investors also received warrants for 4,097,016 common shares. The warrants are each exercisable at $0.78 for five years.
The conversion price and strike price are identical and a 16.42% premium to the April 15 closing share price of $0.67.
The Irvine, Calif., company designs and manufactures systems for producing continuous energy from a range of sources, including previously unusable ultra-low quality gas.
| Issuer: | Ener-Core, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $4.6 million
|
| Maturity: | October 2015
|
| Conversion price: | $0.67
|
| Warrants: | For 4,097,016 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.78
|
| Agent: | Roth Capital Partners, LLC
|
| Pricing date: | April 16
|
| Stock symbol: | OTCBB: ENCR
|
| Stock price: | $0.67 at close April 15
|
| Market capitalization: | $43.6 million
|
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