EarthShell Corporation Secures $10 Million Secured Convertible Debenture
Financing
Business Editors
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Aug. 12,
2002--EarthShell(R) Corporation (NASDAQ: ERTH), innovators of food
service packaging designed with the environment in mind, announced
today that it has raised $10 million in a secured convertible
debenture financing with a group of institutional investors.
The secured convertible debentures are initially convertible by
the holders into shares of EarthShell common stock at a conversion
price of $1.30 per share. As part of the transaction, EarthShell
issued to the investors warrants to purchase 2.5 million shares of its
common stock at an initial exercise price of $1.20 per share. The
convertible debentures, warrants, shares of common stock issuable upon
conversion of the debentures and shares of common stock sold to the
investors were issued under the Company's shelf registration
statement, as amended (registration number 333-76092), which was
declared effective by the Securities and Exchange Commission on
January 7, 2002. Proceeds from the financing will be used for working
capital purposes. Please see our Current Report on Form 8-K dated
August 8, 2002 filed with the Securities and Exchange Commission for
more information about this transaction.
EarthShell Corporation is a development stage company engaged in
the licensing and commercialization of proprietary composite material
technology for the manufacture of foodservice disposable packaging,
including cups, plates, bowls, hinged-lid containers, and sandwich
wraps. In addition to certain environmental characteristics,
EarthShell Packaging is designed to be cost and performance
competitive compared to other foodservice packaging materials.
Additional information may be found via the Internet at
www.earthshell.com. |
