ARISE Closes $2.75M Secured Debt and Warrants Financing and Provides Update on Commerzbank Agreement
WATERLOO, ON, July 15, 2011 /CNW/ - ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T) ("ARISE" or the "Company"), which is a leader in high-performance, high-quality, cost-effective solar technology, today announced the issuance to Radiant Offshore Fund Ltd and Radiant Performance Fund LP (collectively "Radiant") of secured debentures with an aggregate principal amount of $2.75 million. The debentures have a 2 year term and an interest rate of 9.0% per annum. In addition to the issuance of the secured debentures, ARISE issued a total of 66,666,667 share purchase warrants to acquire common shares in the capital of ARISE. Each share purchase warrant is exercisable to acquire 1 common share at an exercise price of $0.10 per share and will expire on the sixth anniversary of the issuance date. If ARISE repays $2,000,000 of the principal amount of the secured debentures prior to the exercise of the warrants by Radiant, 60,000,000 warrants will be cancelled. Any partial repayment of the principal amount of the secured debentures prior to the exercise of the warrants will result in a proportional cancellation of warrants, which results in this private placement being similar to a convertible debenture financing.
The Company intends to use $2.5 million of the proceeds to augment its working capital position at ARISE Germany. The balance of the proceeds are to be used for general corporate purposes.
Update on Commerzbank Agreement
Upon receipt of the $ 2.5 million at ARISE Germany, noted above, Commerzbank will extend to September 15, 2011 the date when ARISE's standstill agreement is due. The Company will issue a public announcement when the agreement with Commerzbank is finalized.
www.newswire.ca/en/releases/archive/July2011/15/c5540…