Axion's (AXPW +2.6%) convertible debt carries a 9% interest rate, and a $1.23/share conversion price (just $0.03 above current levels). The debt buyers also receive 150% warrant coverage via 24-month warrants sporting an exercise price equal to the lower of $1.29/share or 85% of Axion's share price at time of exercise.
The company will initially receive $1.6M in proceeds, and then receive seven monthly tranches of $1M followed by a final $150K tranche. The convertible sale comes a month after a funding deal with LCB International fell through.
Axion Power (NASDAQ:AXPW) -43.2% premarket after announcing that the exclusivity period under its binding letter of intent with LCB International had expired.
AXPW had sought a comprehensive agreement for funding and technology licensing, but says LCB was not willing to move forward with any deal structure that contemplated anything further than a technology license.