Pure Earth, Inc. Announces Preferred Stock Raise Of Over $1 Million
Submitted by SmallCapVoice.com
TREVOSE, Pa., Dec. 3 /PRNewswire-FirstCall/ — Pure Earth, Inc., (OTC Bulletin Board: PREA), today announced that it has raised $1.3 million of new equity. The Company issued 126,600 shares in Series C Convertible Preferred Stock with a majority purchased by its officers, managers, employees and third parties familiar with the companies historical background. The Series C Preferred has a value of $10 per share with a minimum investment of $5,000 or 500 shares with dividends of 10% for the first year and 15% per year thereafter compounded quarterly. Dividends are payable in cash or Series C Preferred Stock, however, the Company anticipates paying dividends with Series C Preferred Stock for the foreseeable future. Conversion rights of the holder allow for conversion to common stock at any time at $0.40 per share. The Company has mandatory conversion rights at its option if the common stock trades above $1.00 for any 30 day period and the 30 day average daily trading volume is greater than 250,000 shares. The Company also has other convertible rights related to a Qualified Public Offering greater than $20 million or sale of the Company. (Refer to the Form 8-K filed December 3, 2009 for additional details relating to this equity raise.)
The Company’s CEO, Mark Alsentzer, stated, “The raising of this equity in these uncertain times and under speaks directly to the confidence of the managers, employees and third parties who know the Company. With our streamlined management team and our current sales backlog we have the ability to rebound to historical profit levels and beyond. This money should bridge the gap until we start generating positive cash flow again.”
The equity raise also exceeded a bank covenant of raising $800,000 by November 30, 2009. Alsentzer added, “There are a lot of positive events going on at the Company, but unfortunately these events have not yet been reflected through our operations. We should begin to see the results early in 2010.”
Disclosure regarding forward looking statements:
This document includes “forward-looking statements” as defined by federal securities laws, with respect to our financial condition, results of operations and business, and our expectations or beliefs concerning future events. Words such as, but not limited to, “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “targets”, “likely”, “will”, “would”, “could”, and similar expressions or phrases, identify “forward-looking statements.”
All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in the environmental services industry. Others are more specific to our operations. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are predictable or within our control. Actual results may differ materially from expected results.
SOURCE Pure Earth, Inc.
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