By Sheri Kasprzak
Atlanta, April 14 - Rentech Inc. closed a private placement for $9 million, the company said.
Rentech sold 90,000 shares of series A preferred stock at $100 each to M.A.G. Capital LLC through Monarch Pointe Fund Ltd.; Mercator Momentum Fund III LP; and Mercator Momentum Fund LP.
The preferreds pay an annual dividend equal to Prime rate plus 200 basis points and are convertible into common shares at a 20% discount to the volume weighted average price per share for five trading days before conversion. There is a $1.3852 ceiling and a $0.80 floor on the conversion price.
The investors also received warrants for 5,921,910 shares at $1.61 each.
Based in Denver, Rentech develops synthetic gasoline produced from gas-to-liquids and coal-to-liquids technologies. The proceeds will be used to advance the company's technologies. The remainder will be used for working capital.
| Issuer: | Rentech Inc.
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| Issue: | Series A preferred stock
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| Amount: | $9 million
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| Shares: | 90,000
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| Price: | $100.00
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| Dividends: | Prime rate plus 200 basis points
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| Conversion price: | Equal to 20% discount to volume weighted average price five days before conversion with a $1.3852 ceiling and an $0.80 floor
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| Warrants: | For 5,921,910 shares
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| Warrant strike price: | $1.61
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| Investors: | Monarch Pointe Fund Ltd.; Mercator Momentum Fund III LP; and Mercator Momentum Fund LP
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| Settlement date: | April 8
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| Stock price: | $1.57 at close April 8
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