By Sheri Kasprzak
New York, April 20 - Veridium Corp. said it has completed a $4.4 million private placement with Cornell Capital Partners, LP.
Cornell bought the 5% debentures due April 1, 2009.
The debentures are convertible into common shares at the lesser of $0.10 or the average of the three lowest closing market prices for the 30 trading days before conversion.
Proceeds will be used for the deployment of Veridium's subsidiary, Veridium Industrial Design Corp., and certain of its technologies including VIDC's corn oil extraction and CO2 BioReactor technologies.
Cornell received warrants for 75 million shares exercisable for five years. Of the warrants, 10 million shares are exercisable at $0.10 each; 10 million are exercisable at $0.15 each; 10 million are exercisable at $0.20 each; 20 million are exercisable at $0.25 each and 25 million at $0.50 each.
Located in Paterson, N.J., Veridium provides waste disposal and recycling programs and technologies.
| Issuer: | Veridium Corp.
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| Issue: | Convertible debentures
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| Amount: | $4.4 million
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| Maturity: | April 1, 2009
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| Coupon: | 5%
|
| Price: | Par
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| Yield: | 5%
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| Conversion price: | The lesser of $0.10 or the average of the three lowest closing market prices for the 30 trading days before conversion
|
| Warrants: | For 75 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.10 for 10 million; $0.15 for 10 million; $0.20 for 10 million; $0.25 for 20 million; $0.50 for 25 million
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | April 19
|
| Stock symbol: | OTCBB: VRDM
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| Stock price: | $0.215 at close April 19
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