FusionTech defaults on second $1.84 million tranche of 8% convertibles

Company sold notes in March as part of $3.6 million private placement

By Devika Patel

Knoxville, Tenn., Sept. 22 - FusionTech Inc. is in default on the second tranche of its 8% senior convertible promissory notes, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company sold the first-tranche notes on March 9 as part of a $3.6 million private placement and failed to pay the principal and interest due on the first tranche's $1.1 million on Sept. 6. The second tranche of $1.84 million were sold on March 21 and became due on Sept. 19.

FusionTech now owes $1.91 million on the second-tranche notes. As of Sept. 19, the company owes $3.06 million on the first two tranches. The third tranche of notes, for $664,000, were issued on March 28 and will be due on Sept. 26.

Based in Changchun, Nev., FusionTech makes clean technology industrial machinery used in the coking process.

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