By Susanna Moon
Chicago, Feb. 23 – Terra Tech Corp. priced $3 million principal amount of 12% senior convertible promissory notes due Aug. 22, 2018, according to an 8-K filing with the Securities and Exchange Commission.
The original conversion price is $0.2495, which is a 19.9% discount to the company’s closing stock price of $0.3115 on Tuesday.
The conversion price in effect on any conversion date of the notes will be the lesser of the original conversion price or 85% of the lowest daily VWAP in the 15 trading days before the conversion date.
Holders may convert their notes at any time, and the company may force conversion of the notes if the daily volume weighted average price for the previous 10 consecutive trading days is $0.70 or more and the average daily trading value is greater than $2.5 million for the previous 10 consecutive trading days.
Proceeds will be used for general corporate purposes.
The Irvine, Calif., company specializes in controlled agricultural technologies.
| Issuer: | Terra Tech Corp.
|
| Issue: | Convertible promissory notes
|
| Amount: | $3 million
|
| Maturity: | Aug. 22, 2018
|
| Coupon: | 12%
|
| Conversion price: | $0.2495; adjusts to lesser of the original conversion price or 85% of the lowest daily VWAP of common stock in the 15 trading days before the conversion date
|
| Conversion discount: | 19.9%
|
| Call option: | At any time at a price of 110% if the prepayment date is within 90 days of the original issue date; 115% if the prepayment date is between 91 days and 180 days after the issue date; and 125% if the payment date is more than 181 days after issue
|
| Pricing date: | Feb. 22
|
| Stock symbol: | OTCBB: TRTC
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| Stock price: | $0.3115 at close Feb. 21
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