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Lime Energy Co. Reports Capital Raise and Debt Reduction

^{Published on 2008-11-18 14:11:29 - Market Wire}
 

Lime Energy Co. Reports Capital Raise and Debt Reduction

 -- Raising $12.5 million in cash -- Eliminating $3.6 million of debt -- Converting $14.7 million of debt into preferred stock -- Increasing shareholder equity by approximately $30 million The recapitalization involves the following steps: -- $6,275,500 raised in a Private Placement of a package of securities comprised of: - 1,787,893 shares of common stock; and - Warrants to purchase 446,975 shares of common stock with a strike price of $4.10 per share and exercisable any time after May 13, 2009 and before November 13, 2011. -- Conversion of a $14,707,104 promissory note held by Mr. Richard Kiphart, our Chairman and largest individual stockholder, that bears 17% interest per annum maturing March 31, 2009 into 358,710 shares of newly issued Preferred Stock with a stated value of $41.00 per share on the following terms: - Cash dividend of 9% and PIK dividend (payable in additional shares of preferred stock) of 6% through June 30, 2009, thereafter increasing to 8% - Redeemable anytime at the Company's option at $41.00 per share plus a redemption premium of 10% to 12%, depending on the redemption date - Convertible at the holder's election any time after December 31, 2009, into shares of common stock on a ten for one basis. -- Purchase of approximately 90.8% of the capital stock of Advanced Biotherapy, Inc. (OTCBB: ADVB) from ten shareholders in a privately negotiated transaction in exchange for 2,252,341 shares of Lime common stock. Mr. Kiphart is the beneficial owner of approximately 82% of the shares of ADVB and serves as its Chairman. The assets of ADVB as of November 14, 2008 include : - Approximately $6.2 million in cash - $800,000 convertible note with Organic Farm Marketing, a company majority owned by Mr. Kiphart. The note bears interest at 10% per annum, payable quarterly with a maturity date of May 17, 2009. - $1.37 million outstanding on a Lime Energy $4.5 million revolving promissory note. The note bears interest at 17% per annum and matures on March 31, 2009. This note will be canceled following the closing of the acquisition.