Pay some billsBalaton arranges $150,000 financing, reprices warrants
Ticker Symbol: U:BPWRF
Balaton arranges $150,000 financing, reprices warrants
Balaton Power Inc (U:BPWRF)
Shares Issued 73,570,260
Wednesday March 24 2010 - News Release
Mr. Michael Rosa reports
BALATON ANNOUNCES PRIVATE PLACEMENT AND REDUCTION OF WARRANT EXERCISE PRICE
Balaton Power Inc. intends to undertake a non-brokered private placement of up to 7.5 million units at the price of two cents per unit for an aggregate gross proceeds of $150,000. The proceeds of the offering will be used for working capital. The completion of the offering is subject to the execution of definitive documentation with investors. The securities issued pursuant to the offering will be subject to the applicable regulatory hold periods from the date of issuance.
Each unit of the offering will consist of one common share of the company and two common share purchase warrants of the company, respectively, an A warrant and a B warrant. Each A warrant will entitle the holder thereof to purchase one common share of the company at the exercise price of three cents for a period of one year after the closing date of the offering and each B warrant will entitle the holder thereof to purchase one common share of the company at the exercise price of three cents for a period of two years after the closing date of the offering.
The company is amending the exercise price of nine million A warrants and nine million B warrants issued pursuant to a private placement announced on April 17, 2009, and debt settlements carried out in July of 2009. A total of 12 million warrants were issued in the first tranche of the private placement (six million each of A and B warrants) on Aug. 20, 2009, and will expire Aug. 20, 2010. A total of two million warrants were issued in the second tranche of the private placement (one million each of A and B warrants) on Oct. 16, 2009, and will expire on Oct. 16, 2010. A total of four million warrants (two million each of A and B warrants) were issued pursuant to the debt settlement agreements on July 23, 2009, and will expire on July 23, 2010. The exercise price of the A and B warrants were amended by reducing the price at which the warrants are exercised from five cents per share to three cents per share for the A warrants and 10 cents per share to three cents per share for the B warrants. For further details on the private placement, see the company's news releases dated April 17, 2009, April 22, 2009, July 17, 2009, August 20, 2009 and Oct. 26, 2009 (see Stockwatch).
All figures in this announcement are represented in U.S. dollars.
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