By Laura Lutz
Des Moines, Oct. 29 - Advanced Environmental Recycling Technologies, Inc. completed a $10 million private placement of series D cumulative preferred stock and warrants with institutional investors.
The preferreds pay dividends of 8% per year. They are convertible into a total of 7,575,763 common shares at a conversion price of $1.32 per share.
The investors received warrants for 3,787,880 shares. The warrants are exercisable at $1.38 per share for five years.
For the first two quarters after issuance, the company may pay dividends in additional preferred shares. Beginning in the third quarter, dividends may be paid in cash or in common shares, at the company's option.
Some of the proceeds will be used to repay about $3 million of outstanding debt. The rest will be used to improve the company's waste plastic recycling processes as well as for marketing, working capital and general corporate purposes.
Canaccord Adams acted as placement agent.
Advanced Environmental is a recycling company based in Springdale, Ark.
| Issuer: | Advanced Environmental Recycling Technologies, Inc.
|
| Issue: | Series D cumulative preferred stock
|
| Amount: | $10 million
|
| Dividend: | 8%
|
| Conversion ratio: | Into 7,575,763 shares
|
| Conversion price: | $1.32
|
| Warrants: | For 3,787,880
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.38
|
| Agent: | Canaccord Adams
|
| Settlement date: | Oct. 29
|
| Stock symbol: | Nasdaq: AERT
|
| Stock price: | $1.22 at close Oct. 29
|
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