Sea Breeze Power Corp. announced it has negotiated four new convertible debentures in the aggregate amount of US$ 1,218,000, and re-negotiated the conversion terms of seven existing convertible debentures in the aggregate amount of US$ 782,000.
The new debentures have a five-year term and are convertible into shares of the Company at $0.34 USD per share during the first and second year, increasing in price by 10% per year the third through fifth years. The re-negotiated debentures in the amount of US$ 782,000 are convertible into shares of the Company at US$ 0.34 per share until their expiry on May 7, 2008.
Each converted share entitles the debenture holder to one share purchase warrant. Each share purchase warrant is exercisable for a period of two years following conversion, but expiring a maximum of five years following the original advancement of funds.
The warrants issuable from the new debentures will have an exercise price of US$ 0.34 per share if exercised during the first or second year term of the debenture, increasing in price by 10% per year if issued during the third through fifth years.
Interest on both new and renegotiated debentures will be calculated at 12% per annum. The interest payments are payable in shares valued at the market price prevailing on semi-annual calculation dates.
The holders of the new debentures are three “non-arm’s length” investors and one “arm’s length” investor.
Sea Breeze Power Corp. is a Vancouver-based renewable energy company focused on unlocking British Columbia’s enormous but ‘stranded’ renewable energy potential. The Company is presently engaged in the development of utility-scale wind farms, small-scale ‘run-of-river’ hydroelectricity, and through a joint venture partnership, the development of state-of-the-art electricity transmission projects.
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