By Sheri Kasprzak
New York, July 20 - Itronics, Inc. has revealed the details of its previously announced $3.25 million private placement of secured convertible notes.
The three-year notes, sold to four accredited investors, bear interest at 8% annually and are convertible into common shares at the lesser of $0.10 each or 55% of the average of the lowest three trading prices during the 20 trading-day period ending one day before conversion.
The investors initially received warrants for 1,153,846 shares, exercisable at $0.15 each for five years. The investors will receive warrants for 923,077 additional shares for each of the remaining two closings.
So far, the company has received $1.25 million in proceeds and expects to receive $1 million upon the filing of a registration statement and $1 million once the registration statement is declared effective.
The proceeds will be used for working capital to expand the company's line of "Gold'n Gro" fertilizer.
Based in Reno, Nev., Ironics operates a photochemical, silver and water recycling facility that removes the heavy metals from photoliquids.
| Issuer: | Itronics, Inc.
|
| Issue: | Secured convertible notes
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| Amount: | $3.25 million
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| Maturity: | Three years
|
| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
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| Conversion price: | The lesser of $0.10 or 55% of the average of the three lowest trading prices for 20 trading days, ending one day before conversion
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.15
|
| Settlement date: | July 15
|
| Stock price: | $0.065 at close July 15
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