By Sheri Kasprzak
New York, Jan. 18 - NewGen Technologies, Inc. obtained a $70 million secured debt financing from BioFuel Investments, LLC.
The 10-year financing facility bears interest at 10% annually and is interest-only for the first two years.
BioFuel will receive warrants for 5 million shares, exercisable at $2.00 each. The strike price is a 161% premium to the company's $0.765 closing stock price on Wednesday.
Proceeds will be used for the purchase of the Appalachian Oil Co., the repayment of debt and for other objectives to facilitate distribution of blended biofuels through the ReFuel America brand.
NewGen, based in Charlotte, N.C., develops biofuel and hydrocarbon blends.
Issuer: | NewGen Technologies, Inc.
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Issue: | Secured debt financing
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Amount: | $70 million
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Maturity: | 10 years
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Coupon: | 10%
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Price: | Par
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Yield: | 10%
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Warrants: | For 5 million shares
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Warrant strike price: | $2.00
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Investor: | BioFuel Investments, LLC
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Settlement date: | Jan. 18
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Stock symbol: | OTCBB: NWGN
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Stock price: | $0.765 at close Jan. 17
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