By Sheri Kasprzak
New York, March 19 - NewGen Technologies, Inc. settled a private placement of secured convertible debentures with Cornell Capital Partners, LP for $1.25 million.
The 10% debentures are due March 13, 2009 and are convertible into common shares at the lesser of $0.80 or 80% of the lowest closing bid price for the five trading days before conversion.
Proceeds will be used for expenses related to the company's acquisition of Appalachian Oil Co., Inc. The rest will be used for working capital.
NewGen, based in Charlotte, N.C., develops biofuel and hydrocarbon blends.
| Issuer: | NewGen Technologies, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $1.25 million
|
| Maturity: | March 13, 2009
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | The lesser $0.80 or 80% of the lowest closing bid price for the five trading days before conversion
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | March 13
|
| Stock symbol: | OTCBB: NWGN
|
| Stock price: | $0.76 at close March 13
|
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