Deal includes warrants; $600,000 of the notes convert to common stock
By Devika Patel
Knoxville, Tenn., Dec. 2 – Abtech Holdings, Inc. said it completed a $3 million private placement of 7.5% secured notes.
Of the notes, $600,000 will mature in two years, with the remaining notes maturing in one year.
The $600,000 note is convertible into common shares at about $0.36 per share, which represents a 12.5% premium to $0.32, the Dec. 1 closing share price. The notes will automatically convert once shareholder approval is obtained.
Investors also received 20% warrant coverage. Each warrant is exercisable for five years.
Proceeds will be used as working capital and for operations.
The Scottsdale, Ariz., company develops clean technology products and services.
| Issuer: | Abtech Holdings, Inc.
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| Issue: | Secured notes
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| Amount: | $3 million
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| Maturity: | One year, two years (for $600,000)
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| Coupon: | 7.5%
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| Conversion price: | $0.36 (approximate, for $600,000)
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| Warrants: | 20% coverage
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| Warrant expiration: | Five years
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| Settlement date: | Dec. 2
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| Stock symbol: | OTCBB: ABHD
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| Stock price: | $0.32 at close Dec. 1
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| Market capitalization: | $20.72 million
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