By Devika Patel
Knoxville, Tenn., June 30 - Entech Solar Inc. negotiated a $10 million private placement of 10% series H preferred stock on June 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell 1,000 preferreds at $10,000 apiece to the Quercus Trust. The placement will only settle if David Gelbaum, a trustee at Quercus and chief executive of Entech Solar, dies before Dec. 31. The placement is also contingent upon Quercus receiving $10 million in life insurance proceeds.
Quercus also will receive a warrant for $13.5 million in shares, which will be exercisable at a price equal to the closing price of the common stock on the day prior to settlement.
Quercus also received a commitment fee of $100,000, which was paid in the form of 10 preferreds and a warrant for 843,750 shares, which will be exercisable at $0.16.
The Fort Worth, Texas, company designs, manufactures and installs solar energy systems that provide electricity and thermal energy in commercial and industrial applications.
| Issuer: | Entech Solar Inc.
|
| Issue: | Series H preferred stock
|
| Amount: | $10 million
|
| Shares: | 1,000
|
| Price: | $10,000
|
| Dividends: | 10%
|
| Warrants: | For $13.5 million in shares
|
| Investor: | The Quercus Trust
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| Fees: | $100,000, in the form of 10 preferreds and a warrant for 843,750 shares.
|
| Pricing date: | June 25
|
| Stock symbol: | OTCBB: ENSL
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| Stock price: | $0.14 at close June 25
|
| Market capitalization: | $45 million
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