Offering includes 100% warrant coverage; proceeds fund working capital
By Devika Patel
Knoxville, Tenn., April 30 - GreenMan Technologies, Inc. said it has completed an $8.2 million sale of 10% convertible preferred stock with investors led by Spring Mountain Capital and Next View Capital. The investors may purchase an additional $2.7 million of preferreds before March 31, 2013.
The preferreds convert to common stock at $0.40 per share, which is a 20% discount to the April 27 closing price of $0.50.
The preferreds were sold with 100% warrant coverage. The warrants are each exercisable at $0.50 for five years. The strike price is identical to the April 27 closing share price.
Proceeds will be used for working capital purposes and to advance the company's dual-fuel technologies business.
Based in Lynnfield, Mass., GreenMan processes scrap tires into a shredded or granular by-product.
| Issuer: | GreenMan Technologies, Inc.
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| Issue: | Convertible preferred stock
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| Amount: | $8.2 million
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| Dividends: | 10%
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| Conversion price: | $0.40
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| Warrants: | 100% coverage
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.50
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| Investors: | Spring Mountain Capital and Next View Capital (leads)
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| Pricing date: | April 30
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| Stock symbol: | OTCBB: GMTI
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| Stock price: | $0.50 at close April 27
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| Market capitalization: | $17.81 million
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