Company offers two-year notes and warrants for 6,813,186 common shares
By Devika Patel
Knoxville, Tenn., April 23 – Ener-Core, Inc. said it will raise $3.1 million in a private placement of 12% senior secured notes.
The notes mature in two years on April 23, 2017. They may be put at 115.
The investors also will receive warrants for 6,813,186 common shares. Each warrant is exercisable at $0.25 for five years. The strike price is a 4.17% premium to $0.24, the April 22 closing share price.
Settlement was expected Thursday. The investor will be reimbursed for $45,000 in costs.
Proceeds will be used for general corporate purposes and to fulfill the capital requirements for the company’s global licensing agreement with Dresser-Rand.
The company also said it plans to raise at least $10 million in a public offering within six months.
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 notes
|
| Amount: | $3.1 million
|
| Maturity: | April 23, 2017
|
| Coupon: | 12%
|
| Put: | At 115
|
| Warrants: | For 6,813,186 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.25
|
| Fees: | $45,000
|
| Pricing date: | April 23
|
| Settlement date: | April 23
|
| Stock symbol: | OTCBB: ENCR
|
| Stock price: | $0.24 at close April 22
|
| Market capitalization: | $24.99 million
|
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