Meridian completes $10.85 million of $13.67 million placement of notes

Term note sold to investors with warrants via agent Praesidian Capital

By Devika Patel

Knoxville, Tenn., Aug. 12 – Meridian Waste Solutions, Inc. raised $10,845,000 in the first tranche of a $13.67 million private placement of term notes on Aug. 6, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Praesidian Capital Opportunity Fund III, LP is the agent for the deal.

Interest on the 14% notes is comprised of a 12.5% cash component and a 1.5% paid-in-kind component. The company may prepay the notes at prices ranging from 101 to 103.

Investors also received warrants for 931,826 common shares, which are each exercisable at $0.025 until Aug. 6, 2023. The strike price reflects a 96.53% discount to the Aug. 5 closing share price of $0.72.

Settlement of the final tranche is expected Aug. 19.

The residential and commercial waste hauling company is based in Milton, Ga.

Issuer:	Meridian Waste Solutions, Inc.
Issue:	Term notes
Amount:	$13.67 million
Coupon:	14%, 12.5% payable in cash and 1.5% payable in kind
Call option:	Subject to prepayment premium of 3%, 2% and 1% until the first anniversary, second anniversary and third anniversary, respectively, of closing date
Warrants:	For 931,826 shares
Warrant expiration:	Aug. 6, 2023
Warrant strike price:	$0.025
Agent:	Praesidian Capital Opportunity Fund III, LP
Settlement date:	Aug. 6 (for $10,845,000), Aug. 19
Stock symbol:	OTCBB: MRDN
Stock price:	$0.72 at close Aug. 5
Market capitalization:	$17.57 million

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