Envision Solar enters promissory notes providing up to $4.5 million

By Wendy Van Sickle

Columbus, Ohio, Sept. 22 – Envision Solar International, Inc. entered into a revolving secured convertible promissory note with an unaffiliated lender on Sept. 18 under which Envision can borrow up to 70% of the value of any specific purchase order from a creditworthy customer up to a maximum of $3 million, according to an 8-K filed with the Securities and Exchange Commission.

The financing will expire in 300 days. To make a draw down, Envision must make a request five days in advance; during that evaluation period the lender may decide a customer is not creditworthy and refuse to advance a draw down.

Borrowings will bear interest at Libor plus 600 basis points. The company also agreed to issue the lender common stock purchase warrants exercisable for up to three years at a price equal to the greater of $0.15 a share and 75% of the volume weighted average price of the company’s common stock for five consecutive trading days.

The company also entered a secured convertible promissory note with the lender under which the latter will lend envision $1.5 million to pay off the outstanding balance of its loan and security agreement with Silicon Valley Bank dated Oct. 30, 2015.

Borrowings under the note bear interest at Libor plus 400 basis points. The note matures in 364 days.

The solar project and technology developer is based in San Diego.

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