Earth Alive Completes Second Tranche of $1,300,000 in Convertible Debt Financing

Earth Alive Clean Technologies (CSE:EAC) has announced it has completed a second tranche of $1.3 million in the private placement offering of secured debentures in the aggregate maximum of $3 million, previously announced September 25, 2017.
As quoted in the press release:

Including the initial tranche of $500,000 completed on October 11th 2017, the aggregate principal amont outstanding on the Debentures is now $1,800,000. The Debentures bear interest at a rate of 15% per annum, which will be payable, together with the principal, on the maturity date of October 11, 2019. The Debenture holders will have the right to convert, in whole or in part and at any time, the principal amount of the Debentures and accrued and unpaid interest thereon into common shares of the Corporation at a conversion price equal to $0.35, subject to adjustments to be made in accordance with applicable anti-dilution provisions. In connection with this tranche, warrants (the “Warrants“) to acquire 4,965,228 common shares have been issued. The Warrants have an exercise price of $0.25, subject to adjustments to be made in accordance with applicable anti-dilution provisions, for a term of five (5) years and, in lieu of exercising the Warrants for cash, they may be, in whole or in part, exercised by means of a “cashless exercise”.
All Debentures issued under the Offering are secured by way of hypothec on all of the Corporation’s intellectual property assets. An initial hypotech was granted to the first tranche subscriber, Investissement Influx Anse Inc., on closing of such tranche and, a second hypohec was granted in favour of the hypothecary representative for the second tranche subscribers, Investissements MSL Inc. The Corporation, Investissements MSL Inc.and Investissement Influx Anse Inc. have entered into an intercreditor agreement providing that (i) all Debentures under the Offering will rank Pari Passu, (ii) any payment received shall be applied on a pro rata basis,(iii) any enforcement of security will require the consent of at least two-thirds (2/3) majority of the outstanding principal amount of all Debentures issued pursuant to the Offering, and (iv) other customary provisions.
Any and all securities issued pursuant to the proposed investment will be subject to a statutory hold period of four months and one day from the date of issuance. The Corporation intends to use the proceeds from the proposed investment for working capital purposes and to continue operations.

Click here to read the full press release.