By Devika Patel
Knoxville, Tenn., March 16 - Evergreen Energy Inc. arranged a $9.31 million registered direct sale of series C convertible preferred stock, according to a prospectus supplement filed Tuesday with the Securities and Exchange Commission.
The company sold 9,312.5 preferreds at $1,000 apiece. The preferreds are convertible into common stock at an initial conversion price of $0.3725.
They will pay a dividend of 9.26% until March 16, 2015.
If investors convert before March 16, 2015, they will receive the dividends up until that date from the conversion date.
Investors also will receive warrants for 12.5 million common shares, which are exercisable at $0.31 for five years.
Rodman & Renshaw, LLC is the agent.
Settlement is expected March 19.
Evergreen said $4.3 million of the proceeds will be placed in escrow account as a make-whole provision. These funds will be released to pay the dividend and make-whole payment.
Remaining proceeds will be used for general corporate purposes.
Evergreen Energy, based in Denver, refines coal into a cleaner solid fuel.
| Issuer: | Evergreen Energy Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $9,312,500
|
| Preferred shares: | 9,312.5
|
| Dividend: | 9.26% until March 16, 2015
|
| Price: | Par of $1,000
|
| Conversion price: | $0.3725
|
| Warrants: | For 12.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.31
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | March 16
|
| Settlement date: | March 19
|
| Stock symbol: | NYSE: EEE
|
| Stock price: | $0.285 at close March 16
|
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