By Sheri Kasprzak
New York, June 5 - Reclamation Consulting and Applications, Inc. sold $1.16 million in secured convertible debentures.
The company issued the 12% debentures to Paul Hughes; Eat-Me Foods, Ltd. and 0761291 B.C. Ltd. The debentures are due Nov. 29, 2008 and are convertible into common shares at the lesser of $0.20 each or the simple moving average of the company's stock for the 10 consecutive trading days beginning May 25, 2007.
Paul Hughes will receive a number of warrants equal to 245% of the shares issuable upon conversion and Eat-Me Foods will receive a number of warrants equal to 50% of the shares issuable upon conversion.
Half of the warrants issued in any conversion will have an exercise price of $0.22 and the other half at $0.24. The warrants expire in three years.
The warrants may be canceled if the company's stock exceeds $0.80 for more than 20 consecutive trading days.
Proceeds from the offering were used to repurchase convertible notes held by AJW Partners, LLC; AJW Offshore, Ltd.; AJW Qualified Partners, LLC; and New Millennium Capital Partners II, LLC.
Located in San Clemente, Calif., Reclamation develops asphalt release agents, concrete form oils and other industrial vehicle coatings.
| Issuer: | Reclamation Consulting and Applications, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $1.16 million
|
| Maturity: | Nov. 29, 2008
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | The lesser of $0.20 or the simple moving average of the company's stock for the 10 consecutive trading days beginning May 25, 2007
|
| Warrants: | Equal to 245% of the shares issuable upon conversion for Paul Hughes, equal to 50% of the shares issuable upon conversion for Eat-Me Foods
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.22 for half; $0.24 for half
|
| Investors: | Paul Hughes, Eat-Me Foods, Ltd. and 0761291 B.C. Ltd.
|
| Settlement date: | May 30
|
| Stock symbol: | OTCBB: RCAA
|
| Stock price: | $0.28 at close May 30
|
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