Deal sells 12.5% five-year notes with warrants for 4,129,694 shares
By Devika Patel
Knoxville, Tenn., Oct. 23 - Lime Energy Co. settled a $6.05 million private placement of 12.5% subordinated secured convertible pay-in-kind notes on Oct. 22, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The note matures in five years and is initially convertible into common stock at $0.7325 per share. The conversion price is a 14.45% premium to the Oct. 19 closing share price of $0.64. The notes may be called or put under certain circumstances.
The investors also received five-year warrants for 4,129,694 shares, which are each exercisable at $0.67, a 4.69% premium to the Oct. 19 closing share price.
Investors included Richard Kiphart and Christopher Capps.
Proceeds will be used for general corporate purposes.
Based in Huntersville, N.C., Lime Energy is an energy technology and engineering company.
| Issuer: | Lime Energy Co.
|
| Issue: | Subordinated secured convertible pay-in-kind notes
|
| Amount: | $6.05 million
|
| Maturity: | Five years
|
| Coupon: | 12.5%
|
| Conversion price: | $0.7325
|
| Call: | Yes
|
| Put: | Yes
|
| Warrants: | For 4,129,694 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.67
|
| Investors: | Richard Kiphart and Christopher Capps
|
| Settlement date: | Oct. 22
|
| Stock symbol: | Nasdaq: LIME
|
| Stock price: | $0.64 at close Oct. 19
|
| Market capitalization: | $15.58 million
|
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