Two-year senior secured notes were sold along with five-year warrants
By Devika Patel
Knoxville, Tenn., May 7 – Ener-Core, Inc. said it has arranged a $1.8 million private placement of senior secured notes. Knight Capital Americas LLC is the agent.
The note is due on May 7, 2017 and accrues interest at 12%.
Investors also will receive warrants for about 2.2 common shares per $1.00 invested. The warrants are each exercisable at $0.25 for five years. The strike price reflects a 13.64% premium to the May 6 closing share price of $0.22.
The securities are substantially identical to the notes and warrants the company sold in a $3.1 million private placement on April 23.
Settlement was expected Thursday.
Proceeds will be used for general corporate purposes and the capital requirements of a global licensing agreement with Dresser-Rand.
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.
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| Issue: | Senior secured notes
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| Amount: | $1.8 million
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| Maturity: | May 7, 2017
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| Coupon: | 12%
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| Warrants: | For about 2.2 shares per $1.00 invested
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.25
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| Agent: | Knight Capital Americas LLC
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| Announcement date: | May 7
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| Settlement date: | May 7
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| Stock symbol: | OTCBB: ENCR
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| Stock price: | $0.22 at close May 6
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| Market capitalization: | $25.39 million
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