The transaction between Cornell Capital Partners and VIASPACE replaced Convertible Debenture held by Cornell. Under the terms of financing, Cornell invested $3.69 million dollars into VIASPACE. VIASPACE in turn gave Cornell 175,000 Class A Units and 600,000 Class B Units. Each Class A Unit entitles Cornell to 2.2609 shares of common stock and one warrant to purchase one share of common stock. Each Class B Unit entitles Cornell to one share of common stock and one warrant to purchase one share of common stock.
VIASPACE’s CEO stated a growing company, such as VIASPACE, needs capital. The company is pleased announce that they have received the institutional support for their strategy and vision. He further commented that VIASPACE has eliminated their debt in favor of institutional ownership. In conclusion he stated, “Cornell’s willingness to convert its debenture into a straight equity investment is a strong vote of confidence.”
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