San Diego, United States [RenewableEnergyWorld.com] Vertical axis wind turbine manufacturer Helix Wind Corp. this week announced the close of a financing with St. George Investments LLC valued at up to US $999,500. The terms of the financing transaction call for the company to issue a six-month convertible secured promissory note in the aggregate principal amount of $779,500, and a five-year warrant to purchase 2,500,000 shares of the company’s common stock at an exercise price of $0.75 per share.
The financing is structured for Helix to receive the funding in five rounds, with the first totaling $599,500. This amount was delivered to the company on April 1, 2010. The terms of the financing are such that as long as no default has occurred St. George will loan the company an additional $100,000 each month for a total of $400,000 in additional financing.
Upon the issuance of each additional note, the company would also issue St. George an additional five year warrant to purchase up to 250,000 shares of Common Stock with an exercise price of $0.75 per share.
“This financing is intended to provide Helix Wind with the funds necessary to execute our fiduciary responsibilities to the company and its shareholders. With this round of financing, we believe we are able to complete and execute on Phase I of our strategic plans, which is to complete the audit, file a 10K and registration statement while taking care of our customer base. In addition, the filing of a registration statement will allow the company broader access to alternate sources of capital for moving the company forward and raising further capital following the recent changes in management and our Board of Directors,” said Scott Weinbrandt, Helix Wind’s chairman, CEO and president.