Company sells 8% six-month senior secured convertible promissory notes
By Devika Patel
Knoxville, Tenn., Feb. 7 - New Generation Biofuels Holdings, Inc. gave further details about a private placement of senior secured convertible promissory notes that settled on Feb. 1 in an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $1 million via agent Palladium Capital Advisors, LLC.
The 8% six-month notes will be initially convertible into 10 million common shares at $0.10 per share. They may be prepaid at any time without penalty.
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 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
|
| Maturity: | Six months
|
| Coupon: | 8%
|
| Conversion price: | $0.10
|
| Conversion ratio: | Into 10 million shares
|
| Call: | Any time
|
| 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: | $3.06 million
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