By Angela McDaniels
Tacoma, Wash., Nov. 5 - GC China Turbine Corp. issued $8 million of common stock and a $1 million convertible promissory note through two private placements on Oct. 30, according to an 8-K filed with the Securities and Exchange Commission on Thursday.
The company sold 6.4 million shares to a group of institutional investors for $1.25 each.
Each investor also received warrants in an amount equal to 10% of the number of shares purchased. The warrants are exercisable at $1.00 per share for three years.
The two-year promissory note was issued to Clarus Capital Ltd. It carries a coupon of 1% per month and is convertible into common stock at $2.00 per share.
Beginning six months after issuance, the company can force conversion of the promissory note at any time.
Proceeds will be used for general corporate purposes.
The completion of the placements was a closing condition to a share exchange transaction through which Golden Wind Holdings Ltd. became the company's controlling shareholder and GC China Turbine acquired Luckcharm Holdings Ltd., a subsidiary of Golden Wind.
GC China Turbine, formerly known as Nordic Turbines, Inc., makes wind turbines and is based in Wuhan, China.
Issuer: | GC China Turbine Corp.
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Issue: | Common stock and convertible promissory note
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Amount: | $9 million
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Settlement date: | Oct. 30
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Stock symbol: | OTCBB: GCHT
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Stock price: | $2.74 at close Oct. 30
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Market capitalization: | $179.14 million
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Stock placement
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Issue: | Common stock
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Amount: | $8 million
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Shares: | 6.4 million
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Price: | $1.25
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Warrants: | 10% coverage
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Warrant expiration: | Three years
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Warrant strike price: | $1.00
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Promissory note
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Issue: | Convertible promissory note
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Amount: | $1 million
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Maturity: | Two years
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Coupon: | 1% per month
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Price: | Par
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Conversion price: | $2.00
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Call option: | After six months, payable in stock
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Investor: | Clarus Capital Ltd.
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