Lithium Technology gets extension on principal payments on $3 million in convertible debentures

By Sheri Kasprzak

New York, March 21 - Lithium Technology Corp. said it received an extension on the principal and interest payments on $3 million in secured convertible debentures held by Cornell Capital Partners, LP.

The principal and interest payments that had been due March 15 will now be due on June 15.

If Lithium does not repay the principal and interest due by June 15, the company must repay $1.8 million immediately and repay the balance over four equal monthly payments beginning July 1 and ending Oct. 1.

If the company closes any debt or equity financings in the interim, the company must use at least half of the proceeds to repay principal and interest on the debentures.

The conversion price of the debentures has also been reduced to $0.03 from $0.06.

For the extension, Cornell will receive warrants for 20 million shares, exercisable at $0.03 each for five years. After June 15, the strike price of the warrants will be reduced to $0.0128.

The notes were first purchased on Oct. 7.

Based in Plymouth Meeting, Pa., Lithium develops lithium-ion rechargeable batteries.

The company's stock fell $0.002, or 8.57%, to end at $0.016 Tuesday (OTCBB: LTHU).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.