This is great news to investors who have languished from the decision to include HTLC technology and all of the delays that accompanied it. Although this COULD have been done AFTER EATAD had been proven at scale generating income, it is the card we were dealt. Where do we go from here? With this cash injection, Woodbridge will be completed and output will increase as the process equipment is installed, tweaked and productive. Couple more weeks. Shorts eat your hearts out.
Converted Organics Enters into Agreement with the Holders of Its Development Bonds to Release Approximately $2.0 Million for Capital Expenditures on Its New Jersey Facility and to Defer Interest Payments until August 2009
Converted Organics Enters into $1.5 Million Financing Agreement
BOSTON, Mar 10, 2009 (BUSINESS WIRE) -- Converted Organics Inc. (NASDAQ:COIN) announced today that it has entered into an agreement with the holders of its $17.5 million of New Jersey Economic Development Authority Bonds to release approximately $2.0 million for capital expenditures on its New Jersey facility and to defer interest payments on the bonds until August 2009. These funds had been held in a reserve for bond principal and interest payments along with a reserve for lease payments. As consideration for the release of the reserve funds, the Company agreed to issue the bond holders 2,284,409 Class B Warrants, which may be exercised at $11.00 per warrant share.
Today the Company also entered into a securities purchase agreement with an institutional investor under which, upon stockholder approval, it will issue a 10% convertible note in a principal amount of up to $1,500,000 at a 10% original issue discount. The investor has placed funds into escrow to acquire $500,000 in principal amount of the note, and will acquire four additional $250,000 increments in principal amount of the note with the first increment occurring on the 30th day after receiving the stockholder approval discussed below, and the remaining three increments monthly thereafter. The convertible note will be convertible at a rate of 85% of the closing bid price of the Company's common stock for the trading day immediately preceding any conversion, subject to anti-dilution rights and adjustments if the Company defaults on the note. The convertible note will mature one year from the date the escrowed funds are released to the Company, which will be upon the approval of the Company's stockholders discussed below. As consideration for the financing, the Company agreed to issue the investor up to 1,713,307 Class B Warrants, on a pro rata basis as funds are released to the Company, which may be exercised at $11.00 per warrant share. The Company agreed to provide the investor with registration rights for the Class B warrants and the common stock underlying the convertible note and Class B warrants.
Under NASDAQ's marketplace rules, the Company is required to obtain stockholder approval to issue the convertible note and warrants.
Chardan Capital Markets, LLC acted as the sole placement agent for this transaction.
It wasn't a sell, but a transfer of shares to his ex-wife as part of a divorce agreement.
From the "Explanation of Responses" section of the subject form 4:
"1. Since the previously reported Form 4, dated September 17, 2007, Mr. Gildea transferred 57,750 shares to his ex-wife pursuant to a distribution of assets in a divorce settlememt agreement."
Of course, we don't know if she sold her shares, but since she's not a corporate officer, it really doesn't matter whether she did or not.
You just not looking in the right places, Davey. Look in MDX's parting post. (Don't worry he/she will be back again. Habertroll pulls the "I'm leaving" act all the time.) She clearly lays out all the good news.
It joost so conveencing. LOL.
Because after all the farting around with HTLC which delayed EATAD production and the ineptitude of not performing first article production quality assurance (NPK) prior to customer shipment, and the absence of understanding in the executive suite of the technology requirements for production ramp up, they have one last chance and a couple million bucks to play it.
Their back is against the wall. All they need is to pipe and install the boiler, wire the centrifuge and fine tune the bagging. That isn't really much. Should cost about $500k.
I get the sense they're listening to Mr. Bayliss. That is encouraging.
Sell the first spike if you want to. I'm in for continued quality fertilizer production.
I wouldn't get so sensitive about everything I suggest.
I'd rather see your energies go towards convincing Ed to provide weekly production numbers and providing some transparency on issues that still need addressing.
Once I have that information in hand, I will be better informed whether or not to support your position.
This is indeed his last chance prove he can get WB running. I understand they've got a way forward to addressing the issues and they've got the money needed to get the additional equipment in place. Let's hope they don't have any more screwups. Otherwise we will have even more pain ahead. But, EG can begin to heal the trust issue with the devout longs here by following my advice.
Gems by all means have it your way. Wouldn't want to be counterconstructive, even though nobody todate has offered any objective constructive criticism of the CEO. He certainly won't hold himself accountable. I thought I would step in and do it for the Chairman of the Board who should have been able to overrule the CEO on terminating Aleo.
But then the CEO and COB are one in the same person. Imagine that, EG is CEO and EG is COB. Gems, is the Fox guarding the Hen house?
Anyway, I just happen to believe that CO won't succeed with the current CEO. And if my saying so will keep them from succeeding then it was a house of cards anyway.
I believed it had a chance with the guys driving business forward in Aleo, Bayliss and Torello. I believed the company had a slight chance with these guys pushing CO forward while EG holds it back.
Yes Aleo had another business that didn't succeed. But then successful entrepreneurs almost never succeed on the first (or sometimes even second) try. But he sure demonstrated his strength in opening the doors of opportunity for COIN and EG to enjoy great success in selling product. Too bad the CEO burned through all startup capital and before getting the company into full production - still hasn't. Hope he succeeds because I'm still invested.
And I certainly wouldn't want to upset the cheerleading parade by being counterconstructive. Rah rah rah.
I've said all I need say on this message board.
Good Bye children