By Sheri Kasprzak
New York, Dec. 20 - Ecosphere Technologies, Inc. concluded a $4,964,494 private placement.
The company sold to four institutional and one accredited investor $4.7 million proceeds in units comprised of $5,595,238 in senior convertible debentures and warrants for 11,372,432 shares.
The warrants are exercisable at $0.4751 each for five years.
The company also sold 734,707 units at $0.36 each. The units consist of one share and one warrant with each warrant exercisable at $0.44 each for five years.
The discounted debentures were priced at 84, bear interest at 9% annually and are convertible into common shares at $0.369 each. The debentures are due Dec. 15, 2009.
The debentures may be prepaid before Dec. 15, 2008 at 110% of the principal plus interest and between Dec. 16, 2008 and maturity at 130% of principal plus interest.
Enable Capital Management, LLC was one of the investors.
Proceeds will be used for the expansion of the company's subsidiaries, debt repayment and working capital.
Based in Stuart, Fla., Ecosphere develops products to decrease the emissions of contaminated residue into the air, ocean and other water systems.
Convertibles
| Issuer: | Ecosphere Technologies, Inc.
|
| Issue: | Senior convertible debentures
|
| Amount: | $5,595,238
|
| Proceeds: | $4.7 million
|
| Maturity: | Dec. 15, 2009
|
| Coupon: | 9%
|
| Price: | 84
|
| Conversion price: | $0.369
|
| Call: | May be prepaid at 110% of par plus interest before Dec. 15, 2008; at 130% of par plus interest from Dec. 16, 2008 through maturity
|
| Warrants: | For 11,372,432 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.4751
|
| Investor: | Enable Capital Management, LLC
|
| Settlement date: | Dec. 19
|
| Stock symbol: | OTCBB: ESPH
|
| Stock price: | $0.40 at close Dec. 19
|
|
|
| Units
|
| Issuer: | Ecosphere Technologies, Inc.
|
| Issue: | Units of one share and one warrant
|
| Amount: | $264,494
|
| Units: | 734,707
|
| Price: | $0.36
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.44
|
| Investor: | Enable Capital Management, LLC
|
| Settlement date: | Dec. 19
|
| Stock symbol: | OTCBB: ESPH
|
| Stock price: | $0.40 at close Dec. 19
|
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