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Ener-Core Completes Debt Restructuring and Signs Definitive Documents for Private Placement of up to $4.5 Million of Convertible Senior Secured Notes and Warrants
Ener-Core Completes Debt Restructuring and Signs Definitive Documents for Private Placement of up to $4.5 Million of Convertible Senior Secured Notes and Warrants.
About this update from Ener Core Inc
[{"type":"text","content":"\nEner-Core Completes Debt Restructuring and Signs Definitive Documents for Private Placement of up to $4.5 Million of Convertible Senior Secured Notes and Warrants\n\nEner-Core Completes Debt Restructuring and Signs Definitive Documents for Private Placement of up to $4.5 Million of Convertible Senior Secured Notes and Warrants\n\n\nConcurrent Restructuring of Existing Senior Debt and New Financing Strengthen Financial Position \n\nIRVINE, CA--(Marketwired - November 25, 2016) - Ener-Core, Inc. (OTCQB: ENCR), a developer of innovative gas conversion technologies for global commercial and industrial facilities, has entered into definitive documents for a private placement of up to approximately $4.5 million principal amount of convertible senior secured notes and warrants to purchase the Company's common stock. The Company anticipates that it will close on approximately $3.6 million principal amount of convertible senior secured notes and warrants on November 29, 2016. Pursuant to the terms of the transaction documents, the Company may issue up to an additional $900,000 principal amount of convertible senior secured notes and warrants on or prior to December 12, 2016. The Company intends to use the net proceeds from the private placement for working capital and general corporate purposes. In connection with the offering, the Company also restructured its existing senior debt on the same terms as the convertible senior secured notes issued in the private placement. The convertible senior secured notes will bear no ordinary interest, as the principal amount of the convertible senior secured notes will be issued at a 10% original issue discount for aggregate proceeds of up to $4.0 million, and mature on December 31, 2018. Each investor will also receive a warrant with a five-year term to purchase 400 shares of common stock for each $1,000 of principal amount of convertible senior secured notes purchased by such investor, at an exercise price of $3.00 per share. The convertible senior secured notes will be convertible into common stock initially at a conversion price of $2.50 per share and will automatically convert into shares of common stock on the fifth trading day immediately following the issuance date of the convertible senior secured notes on which the weighted average price (as defined in the convertible senior secured notes...