By Devika Patel
Knoxville, Tenn., May15 - Environmental Service Professionals, Inc. said in an 8-K filed Wednesday with the Securities and Exchange Commission that it has arranged a $10 million loan with Siena Investment Resources, LLC.
The loan is evidenced by a 10% secured convertible promissory note at each closing.
Interest will be pre-payable each year after closing and thereafter on each anniversary date of each closing during the term of a note.
Any interest not paid when due will be added to the principal and will begin to accrue interest.
The note matures on April 30, 2011.
At any time, after written notice, Siena may convert up to 20% of the principal and interest into common shares at $0.58 per share. For each share issued upon conversion, the company will also issue Siena a warrant for one more share, exercisable at $0.75 for three years.
Environmental Service Professionals is a Palm Springs, Calif.,-based company, which franchises the right to operate a business that provides limited mold, moisture and allergen survey services for residential and commercial buildings using the company's mandatory central call center.
| Issuer: | Environmental Service Professionals, Inc.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $10 million
|
| Maturity: | April 30, 2011
|
| Coupon: | 10%
|
| Price: | Par
|
| Conversion price: | $0.58
|
| Warrants: | One warrant per share upon conversion
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.74
|
| Investor: | Siena Investment Resources, LLC
|
| Pricing date: | May 15
|
| Stock symbol: | OTCBB: EVSP
|
| Stock price: | $0.135 at close May 15
|
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