Turbodyne Reports $20 Million Agreement With Private Equity Investor
16 April 1999
Turbodyne Reports $20 Million Agreement With Private Equity Investor
WOODLAND HILLS, Calif.--April 15, 1999-- Turbodyne Technologies Inc. (Easdaq:TRBD.) Thursday reported that it has executed a term sheet with a private equity investor pursuant to which the investor would invest up to $20 million in the company over a period of approximately one year.The term sheet provides that the investor will invest $2 million at closing and an additional $3 million 60 days thereafter in the company's 6 percent secured, convertible one-year debentures. The company will have the option to sell and the investor must purchase additional debentures in the amount of $3 million at each of five subsequent closings commencing 75 days after the first closing and each 75 days thereafter for a total of up to $15 million.
The investor's obligation to purchase these additional debentures will depend on Turbodyne's common stock achieving certain volume and price levels in all non-U.S. markets where it is traded in the month prior to each closing. If the stock does not achieve the required levels prior to a particular closing, the investor does not have to purchase the additional $3 million of debentures at that closing.
The debentures are convertible into the company's common stock at formula prices based on the price of the company's stock in the period prior to the closing and the conversion. In addition, the investor will be issued warrants to purchase the company's common stock in the amount of 15 percent of the face amount of the debentures.
The term sheet is subject to the negotiation of the terms and conditions of definitive purchase and sale documentation, including price and volume parameters of the company's common stock and to the investor's due diligence. Although the company is hopeful that definitive documentation can be completed, there can be no assurance that the investor's due diligence will be satisfactory or that the company and the investor will be able to agree on the terms of the definitive documentation.
Turbodyne Systems, the Engine and Pollution Technology Division of Turbodyne, designs, develops, manufactures and markets patented pollution-reduction, fuel economy and performance-enhancing products for internal combustion engines in the automotive, transportation, construction, marine, agriculture, mining, military and power generation industries.
Turbodyne's Light Metals Division is a manufacturer of machined aluminum castings and a leading supplier to the automotive industry.
Offices and/or plants are located in Carpinteria, La Mirada, Encinitas and Woodland Hills, Calif.; New York City; Ensenada and Mexico City, Mexico; Vancouver, Canada; Paris; and Frankfurt, Germany.
Turbodyne's World Wide Web address is: www.turbodyne.com.