Private deal also sells two warrants exercisable for 5 million shares
By Devika Patel
Knoxville, Tenn., Feb. 2 - New Generation Biofuels Holdings, Inc. said it settled a private placement of senior secured convertible promissory notes on Tuesday. The deal raised $1 million via agent Palladium Capital Advisors, LLC.
The notes will be initially convertible into 10 million common shares at $0.10 per share.
In addition, the investors received class A warrants exercisable for 4.5 million shares at $0.10 per share and class B warrants exercisable for 500,000 shares at $0.005 per share.
The conversion price is a 100% premium to the Jan. 31 closing share price of $0.05 and the strike prices are a 100% premium and a 90% discount, respectively, to that price.
Proceeds will be used for general working capital purposes.
Based in Houston, New Generation Biofuels is a development-stage renewable fuels provider.
| Issuer: | New Generation Biofuels Holdings, Inc.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $1 million
|
| Conversion price: | $0.10
|
| Conversion ratio: | Into 10 million shares
|
| Warrants: | For 5 million shares
|
| Warrant strike price: | $0.10 (for 4.5 million shares), $0.005 (for 500,000 shares)
|
| Agent: | Palladium Capital Advisors, LLC
|
| Settlement date: | Feb. 1
|
| Stock symbol: | Pink Sheets: NGBF
|
| Stock price: | $0.05 at close Feb. 1
|
| Market capitalization: | $3.62 million
|
© 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.
