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Press Release Source: WorldWater & Power Corp.
WorldWater & Power Corporation Completes $4.45 Million Financing and Recapitalization
Tuesday July 26, 7:30 am ET
Funding for Current Projects, Working Capital, Sales Growth
PENNINGTON, N.J., July 26 /PRNewswire-FirstCall/ -- WorldWater & Power Corp. (OTC Bulletin Board: WWAT - News), developer of high-horsepower solar energy systems, announces the completion on July 22 of a $4,000,000 financing agreement with the hedge fund CAMOFI Master LDC, an affiliate of Centrecourt Asset Management, LLC, a New York based asset management firm. In addition to the private placement, the recapitalization includes $450,000 in exercised warrants, and reduction of long-term debt by $900,000 through stock conversions.
The financing consists of $3 million of 10% senior secured convertible notes due 2008 and 4,259,260 shares of common stock for a purchase price of $1.02 million.
Upon the closing of this private placement, WorldWater received the purchase price for the shares of common stock and $1 million of the purchase price of the convertible notes. The $2 million balance of the purchase price of the convertible notes will be held in escrow by a commercial bank pending the satisfaction of the following conditions: $1,000,000 will be paid to WorldWater from the escrow when the Company's common stock is trading at or above $0.40 per share and trading volume exceeds 500,000 shares for a period of 10 consecutive days, and $1,000,000 will be paid upon the execution of new contracts for WorldWater's products and services in the aggregate amount of $5,000,000. The convertible notes bear interest at the annual rate of 10%, payable monthly in arrears, and are due and payable July 21, 2008. The notes are convertible into WorldWater common stock at a price of $0.18 per share.
The proceeds of this financing and recapitalization strengthen the Company's balance sheet and will help fund the Company's current project implementations, anticipated sales growth, working capital and intellectual property development.
Of the $450,000 raised through the exercise of warrants held by current Company shareholders, $400,000 has been used to reduce its outstanding line of credit from $1 million to $0.6 million. The conversion to common stock of $900,000 of outstanding convertible debt reduced the Company's long-term debt.
"We are delighted to be working with CAMOFI Master LDC. Their team of seasoned Wall Street and international investment veterans will help us as we grow in the future," said Quentin T. Kelly, Chairman and CEO of WorldWater & Power Corp. "In addition to strengthening our working capital and operations base, these funds will enable us to expedite the nine current projects in our backlog."
About WorldWater & Power Corporation
WorldWater & Power Corporation is a full-service, international solar engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's water supply and energy problems. The Company has offices in New Jersey and California. For more information about WorldWater & Power Corporation, visit their website at [URL]http://www.worldwater.com[/URL] .
Contact:
WorldWater & Power Corp.
Rose Mary Schwarz, 609-818-0700, ext. 33
[EMAIL]rschwarz@worldwater.com[/EMAIL]
Investors/Media Contacts:
Denise Roche / Jason Rando
The Ruth Group
646-536-7008/7025
[EMAIL]droche@theruthgroup.com[/EMAIL]
[EMAIL]jrando@theruthgroup.com[/EMAIL]
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Source: WorldWater & Power Corp.
