SmarTire financing agreement may gross more than $1 million
SmarTire Systems Inc. recently entered into a financing agreement with
Xentenial Holdings Ltd., a subsidiary of Yorkville Advisors LLC, formerly Cornell Capital Partners LP.
On Nov. 30, 2007, the company entered into an agreement providing for the sale of up to $1.15 million in convertible debentures. SmarTire sold one convertible debenture under this agreement for gross proceeds of $422,000, and issued 225 million five-year warrants exercisable into shares of its common stock at $0.0298 per share.
The agreement provides that SmarTire may sell convertible debentures for the balance of up to $728,000 at any time until May 30, 2008, and issue up to 420 million five-year share purchase warrants
exercisable into shares of its common stock at $0.0298 per share.
Terms of the financing are disclosed in the company's 8-K filed Dec. 5, 2007.
SmarTire says it intends to use the net proceeds of this financing offering for general corporate purposes, including working capital.
SmarTire CFO Jeff Finkelstein says the company anticipates receiving the balance of the funding within the next 30 to 45 days.