cjp0531, hope this answers your question. <Did someone mention an acquisition ? So tell me, how do they plan to raise the funds to pay for it ?>
May 15, 1998
RENTECH INC - Quarterly Report (SEC form 10QSB)
To achieve its stated plan to grow, diversify and acquire new businesses, the Company negotiated the placement of 200,000 shares of Series A Preferred Stock at $10.00 per share together with warrants to purchase 200,000 shares of Series B Preferred Stock and, at the option of the Company, up to an additional 600,000 shares of Series B Preferred Shares at $10.00 per share; or a commitment by the purchase of up to $10,000,000. As of March 31, 1998 the Company has sold 200,000 shares of its Series A Preferred Stock at $10 per share. The net proceeds were $1,800,000. The Series A Preferred Stock pays a dividend of 9% per year and is convertible over 18 months into common stock at the lesser of the average closing bid price of the common stock for the five trading days preceding the sale of preferred shares, or 82.5% of the average closing bid for the five trading days preceding the conversion of the Series A Preferred Stock into common stock. The warrants provide for the purchasers, during the 18 months after purchase of the Series A Preferred Stock, to purchase, and the Company to sell, 200,000 shares of Series B Preferred Stock for an additional $2,000,000 and provide the Company during the same period the option to sell to the purchasers an additional 600,000 shares of Series B Preferred Stock at $10.00 per share. The Company has no obligation to sell any of the 600,000 shares of the Series B Preferred Stock to the purchasers. The Company does not have to sell any of the 800,000 shares of Series B Preferred Stock to the purchasers if certain conditions occur, primarily related to volume and the price of the common stock in the market. The Company has no obligation to sell any of the 800,000 shares of Series B Preferred Stock if the average daily share price for the common stock for the 10 trading days prior to the sale is less than $1.00 per share. The Series B Preferred Stock pays a dividend of 9% per year and is convertible into common stock until December 31, 1999 at 82.5% of the average closing bid for the five trading days preceding the date of conversion.
The Company expects to realize income during the next 12 months from its license granted for the plant at Arunachal Pradesh in India. The Company expects to receive license fees in the amount of $240,000, and additional fees for engineering services are expected though not yet under contract. Income from royalties associated with the India plant are not expected until after the completion of construction and startup and operation of the plant. Construction is not expected to be completed until the first part of 1999.
Steve |
