Reclamation Consulting repurchases $2 million in convertibles issued in 2005

By Sheri Kasprzak

New York, Feb. 2 - Reclamation Consulting and Applications, Inc. repurchased $2 million in convertible notes and warrants issued in June 2005.

Reclamation will pay par plus a prepayment penalty of 30%.

For the cash payment, the four holders of the notes - AJW Offshore, Ltd.; AJW Qualified Partners, LLC; AJW Partners, LLC; and New Millennium Capital Partners II, LLC - will receive 3.25 million shares of restricted stock valued at $325,000 at $0.10 each.

If Reclamation does not repurchase all of the notes by March 30, the repurchase agreement becomes null and void, according to a statement released Friday by the company.

Currently, the company does not have enough funds to repurchase the notes within the required timeframe but intends to conduct a private placement of debt or equity to fund the repurchase.

The three-year notes were first issued June 23, 2005, bear interest at 10% annually and are convertible into common shares at $0.21 or 50% of the average of the three lowest intraday trading prices for the 20 trading days before conversion.

Based in San Clemente, Calif., Reclamation develops chemicals and byproducts used in industrial applications.

© 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.