Two-year deal allows EnerTeck to sell shares at 90% of five-day VWAP
By Susanna Moon
Chicago, July 20 - EnerTeck Corp. entered into an investment agreement on July 15 for a $4 million equity line with Kodiak Capital Group, LLC, according to an 8-K filing with the Securities and Exchange Commission.
Under the terms of the agreement, the company may send a written notice to the investor from time to time with the dollar amount of shares the company plans to sell to the investor. The price per share will be 90% of the lowest daily volume-weighted average price of the company's common stock for the five days beginning on the put notice.
The amount sold to Kodiak under any single put notice will be equal to an amount up to but not exceeding the greater of $200,000 and 200% of the average daily volume of the common stock for three trading days prior to the put notice multiplied by the average of the three daily closing bid prices immediately preceding the put notice, the filing noted.
The company may not deliver the put notice until after the resale of the shares has been registered under a registration statement filed with the Securities and Exchange Commission.
EnerTeck has a 24-month period, beginning on the trading day after the registration statement, during which it may deliver the put notice. In addition, the company cannot submit a new put notice until the closing of the previous put notice, and in no event will the investor be entitled to purchase that number of shares, which when added to the sum of the number of shares already beneficially owned by the investor would exceed 9.99% of the number of shares outstanding on the closing date.
The investment agreement will terminate when the investor has purchased a total of $4 million of the company's common stock, 24 months after the effectiveness of the registration statement or upon written notice from the company to the investor.
EnerTeck is a Stafford, Texas-based company that makes a fuel-borne catalytic engine treatment for diesel engines.
| Issuer: | EnerTeck Corp.
|
| Issue: | Equity line
|
| Amount: | $4 million
|
| Maturity: | 24 months after registration statement
|
| Price: | 90% of the lowest daily volume-weighted average price of the company's common stock for the five days beginning on the put notice
|
| Warrants: | No
|
| Investor: | Kodiak Capital Group, LLC
|
| Pricing date: | July 15
|
| Stock symbol: | Pink Sheets: ETCK
|
| Stock price: | $0.40 at close on July 13 (last close)
|
| Market capitalization: | $8.79 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
