By Sheri Kasprzak
New York, June 1 - nCoat, Inc. is gearing up to close a private placement of series A and series B convertible notes for $11.85 million.
The offering includes $8.85 million in series A notes and $3 million in series B notes, as well as 22.125 million in series A warrants and 7.5 million in series B warrants.
Of the total notes, $800,000 came from the conversion of existing debt of the company.
The 6% notes are convertible into common shares at $0.40 each. The maturity of the notes could not be determined by press time Friday.
The series A warrants are exercisable at $1.00 each and the B warrants at $0.80 each.
Under the note terms, the company may sell another $17.75 million in notes, with no more than $9 million being from series A, by June 18.
Proceeds will be used for acquisitions, debt repayment, working capital and general corporate purposes.
Connected to this offering, holders of $2 million in convertible debentures issued between Oct. 1, 2006 and March 1, 2007 requested the conversion of their securities. The debentures are convertible at $0.50 each and conversion is expected to occur within the next week.
Located in Whitsett, N.C., nCoat develops nano-formulated and traditional coatings applied to metals, ceramics, fabrics and other materials.
| Issuer: | nCoat, Inc.
|
| Issue: | Series A and B convertible notes
|
| Amount: | $8.85 million in series A; $3 million in series B
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.40
|
| Warrants: | Series A for 22.125 million shares; series B for 7.5 million shares
|
| Warrant strike price: | $1.00 for series A; $0.80 for series B
|
| Announcement date: | June 1
|
| Stock symbol: | OTCBB: NCOA
|
| Stock price: | $0.785 at close June 1
|
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