Abtech Holdings awarded USD1.4m 7.5% debt financing; CTO Upen Bharwada participates in funding.
M2 EQUITYBITES-May 18, 2015-Abtech Holdings awarded USD1.4m 7.5% debt financing; CTO Upen Bharwada participates in funding
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Environmental technologies company Abtech Holdings (OTC QB:ABHD) said on Monday that it has received USD1.4m in a private offering of 7.5% secured promissory notes with accompanying warrants.
The company added invested amount consist of USD650,000 from a new investor, USD650,000 from a long standing existing investor and USD100,000 from its chief technology officer, Upen Bharwada.
In addition, the company stated the notes mature in one year and the accompanying warrants are for an aggregate of 2.24m common shares with an exercise price equal to the market value of its common stock on the date of issuance. The warrants expire five years after the date of issuance.
According to the company, it may extend the maturity date of the notes up to two times by 90 days each. If the first extension option is exercised, the interest rate will increase to 9.5% per annum. If the second extension option is exercised, the interest rate will increase to 11.5% per annum. With each extension, the number of warrant shares increases by 10%.
Proceeds from this financing may be used by the company for operating capital.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 18, 2015|
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