By Sheri Kasprzak
New York, Oct. 14 - Lithium Technology Corp. said it has completed a private placement of 8% convertible debentures with Cornell Capital Partners, LP.
The one-year debentures are convertible into common shares at $0.06 each.
The debentures are redeemable through Jan. 5, 2006 if the company's stock trades below the conversion price. After Jan. 5, 2006, the company must pay a premium of 15% for any amount prepaid.
Cornell also received warrants for 20 million shares with 10 million of the warrants exercisable at $0.06 each, 5 million exercisable at $0.07 each and 5 million exercisable at $0.10 each. The warrants expire in five years.
Based in Plymouth Meeting, Pa., Lithium Technology makes rechargeable lithium ion batteries for notebook computers and cell phones.
| Issuer: | Lithium Technology Corp.
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| Issue: | Convertible debentures
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| Amount: | $3 million
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| Maturity: | One year
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | $0.06
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| Call: | Redeemable at par before Jan. 5, 2006. After Jan. 5, 2006, the notes may be prepaid at a 15% premium to face value
|
| Warrants: | For 20 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.06 for 10 million shares; $0.07 for 5 million shares; $0.10 for 5 million shares
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | Oct. 7
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| Stock price: | $0.06 at close Oct. 7
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