Company has option to extend maturity twice by 90 days each
By Angela McDaniels
Tacoma, Wash., May 18 – Abtech Holdings, Inc. received $1.4 million from a private offering of 7˝% one-year secured promissory notes and five-year warrants for 2.24 million common shares.
The exercise price of the warrants, which was not disclosed, is equal to the market value of the company’s common stock on the date of issuance.
The company may extend the maturity date of the notes up to two times by 90 days each. If the first extension option is exercised, the interest rate will increase to 9˝% per annum. If the second extension option is exercised, the interest rate will increase to 11˝% per annum. With each extension option that the company elects to exercise, the number of warrant shares increases by 10%.
The invested amount is made up of $650,000 from a new investor, $650,000 from an existing investor and $100,000 from Abtech chief technology officer Upen Bharwada.
Proceeds will be used for operating capital.
Scottsdale, Ariz.-based Abtech Holdings has two subsidiaries: Abtech Industries, Inc., an environmental technologies and engineering firm, and AEWS Engineering, a civil and environmental engineering firm.
| Issuer: | Abtech Holdings, Inc.
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| Issue: | Secured promissory notes
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| Amount: | $1.4 million
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| Tenor: | One year; may be extended two times by 90 days each
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| Coupon: | 7˝%; will increase to 9˝% if first extension option is exercised and to 11˝% if second extension option is exercised
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| Warrants: | For 2.24 million shares; number will be increased by 10% with each maturity extension
|
| Warrant expiration: | Five years
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| Warrant strike price: | Equal to market value of company’s stock on date of issuance
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| Investor: | Upen Bharwada (for $100,000)
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| Announcement date: | May 18
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| Stock symbol: | OTCQB: ABHD
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| Stock price: | $0.09 at close May 15
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| Market capitalization: | $5.55 million
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