Deal also includes warrant for 921,875 shares, exercisable at $1.37
By Devika Patel
Knoxville, Tenn., Oct. 10 - New Energy Technologies, Inc. negotiated a $3 million bridge loan with Kalen Capital Corp. on Oct. 7, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 7% loan is represented by a convertible promissory note that matures on Oct. 6, 2014. It may be prepaid at any time. The note may be converted into units of one common share, one five-year series J warrant and one five-year series K warrant at a price equal to 70% of the 20-day average closing price of the common stock on the last trading date preceding the date of exercise, with a floor of $1.00.
The exercise price of each series J warrant will be equal to the lesser of $1.47 or 107.3% of the unit exercise price, and the exercise price of each series K warrant will be equal to the lesser of $1.57 or 114.6% of the unit exercise price.
Kalen also received warrants for 921,875 shares, which are each exercisable at $1.37 for five years. The strike price reflects a 36.28% discount to the Oct. 4 closing share price of $2.15.
The renewable and alternative energy company is based in Columbia, Md.
| Issuer: | New Energy Technologies, Inc.
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| Issue: | Bridge loan represented by a convertible promissory note
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| Amount: | $3 million
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| Maturity: | Oct. 6, 2014
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| Coupon: | 7%
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| Conversion price: | 70% of the 20-day average closing price of the common stock on the last trading date preceding the date of exercise, with a floor of $1.00
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| Call: | Yes
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| Warrants: | For 921,875 shares, two warrants per unit upon conversion of the note
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.37, the lesser of $1.47 or 107.3% of the unit exercise price and the lesser of $1.57 or 114.6% of the unit exercise price
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| Investor: | Kalen Capital Corp.
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| Settlement date: | Oct. 7
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| Stock symbol: | OTCBB: NENE
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| Stock price: | $2.15 at close Oct. 4
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| Market capitalization: | $47.9 million
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