Business
American Power Group Announces Completion of a $2.6 Million Private Placement Round With Several Existing Shareholders and Investors Affiliated With Members of its Board of Directors
American Power Group Announces Completion of a $2.6 Million Private Placement Round With Several Existing Shareholders and Investors Affiliated With Members of its Board of Directors.
About this update from American Power Group Corp.
[{"type":"text","content":"\n-New Capital Will Accelerate APG’s Exit From The Oil Crisis And Support Key 2017 Marketing Initiatives-\n-Neil Braverman To Become New Chairman Of The Board –- Matt Van Steenwyk Appointed As Lead Strategic Director-LYNNFIELD, Mass., Feb. 01, 2017 (GLOBE NEWSWIRE) -- American Power Group Corporation (OTCQB:APGI) today announced the completion of the initial round of a $3 million private placement of Subordinated Contingent Convertible Promissory Notes (“Notes”) with several existing shareholders, members of management and investors affiliated with members of its Board of Directors.The unsecured Notes bear interest at the rate of 10% per annum and will become due and payable on July 27, 2017. The principal amount of the Notes, together with all accrued but unpaid interest thereon, will automatically be convertible into shares of Series E 12.5% Convertible Preferred Stock (“Series E Convertible Preferred Stock”) at a conversion price of $100,000 per share, immediately upon the effectiveness of the filing of a Certificate of Designation of Preferences, Rights and Limitations of Series E Convertible Preferred Stock with the Secretary of State of Delaware. Each share of Series E Convertible Preferred Stock will be convertible to our common stock at a conversion price of $0.10 per share. Upon the conversion of the Notes into shares of Series E Preferred Stock, we will issue to each investor a ten-year warrant to purchase a number of shares of common stock equal to ten times the number of shares issuable upon conversion of the Series E Preferred Stock, exercisable at $0.10 per share. We have agreed, however, not to file the Certificate of Designation until certain conditions are met, the details of which and other details of the transaction will be set forth in a Current Report on Form 8-K, which we will file with the Securities and Exchange Commission today.Concurrent with the closing of the financing, Neil Braverman became our new Chairman of the Board of Directors replacing Maurice Needham who will remain as a Director.  Mr. Braverman is a major investor in the company and has been a Director since April 30, 2012. He is the founder of Associated Private Equity and previously founded and was co-Chairman of Safeskin Corporation, the leading manufacturer of latex/synthetic gloves to the healthc...