This is second note purchased by CCTC, which can purchase one more
By Angela McDaniels
Tacoma, Wash., May 26 – Clean Coal Technologies, Inc. sold a $500,000 promissory note to CCTC Acquisition Partners LLC on May 22. This is the second note issued under an agreement reached with the lender on May 12.
Each note has a term of up to six months and an interest rate of 1.2% per month.
The lender has the option to buy one additional note of up to $500,000 by June 1.
The notes are secured with a first-lien priority security interest in the company’s equipment and its demonstration plant. If the third note is issued, the company will then grant to the lender a first-priority security interest in and to the company’s intellectual property.
Proceeds will be used to continue fabrication of the company’s demonstration plant in Tulsa, Okla.
The company said the promissory notes are an interim step in connection with a more comprehensive financing transaction between the company and the lender. If this additional financing transaction occurs, it is expected to conclude by June 15.
If the company completes the additional financing transaction, the notes and accrued interest will automatically convert into new three-year 12% convertible notes, which will be issued at 91. These 12% notes will be convertible into units of one common share of the company and a three-year warrant. The warrant will be exercisable at $0.10, a 23.08% discount to the May 8 closing share price of $0.13.
If the additional financing does not occur by June 15 because the company completes a financing transaction with an unaffiliated third party, the promissory notes are putable.
Based in New York, Clean Coal is a cleaner-energy technology company.
| Issuer: | Clean Coal Technologies, Inc.
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| Issue: | Convertible promissory notes
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| Amount: | $1 million
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| Term: | Six months
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| Coupon: | 1.2% per month (14% per year)
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| Warrants: | No
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| Investor: | CCTC Acquisition Partners LLC
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| Settlement dates: | May 12 (for $500,000) and May 22 (for $500,000)
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| Stock symbol: | OTCBB: CCTC
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| Stock price: | $0.13 at close on May 8
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| Market capitalization: | $8.14 million
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