SmarTire announced today that it has entered into two financing agreements with Xentenial Holdings Limited, a subsidiary of Yorkville Advisors, LLC, formerly Cornell Capital Partners LP.
On November 19, 2007, the company sold a convertible debenture for gross proceeds of $96,500.
On November 30, 2007, the company entered into an agreement providing for the sale of up to $1.15 million in convertible debentures. On November 30, 2007, SmarTire sold one convertible debenture under this agreement for gross proceeds of $422,000 and issued 225 million five year warrants exercisable into shares of its Common Stock at $0.0298 per share. The agreement provides that SmarTire may sell convertible debentures for the balance of up to $728,000 at any time until May 30, 2008 and issue up to 420 million five year share purchase warrants exercisable into shares of its Common Stock at $0.0298 per share.
Terms of both financings are disclosed in the company’s 8-K filed today.
SmarTire intends to use the net proceeds of this financing offering for general corporate purposes, including working capital.
“We are extremely pleased that Yorkville has demonstrated its continued support of our strategy and vision and we anticipate receiving the balance of the funding within the next thirty to forty-five days,” said SmarTire CFO Jeff Finkelstein.
SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide under the SmartWave(TM) trademark. The company has invested more than $100 million in R&D for its patented tire monitoring technology. It developed numerous patent-protected wireless technologies and has advanced tire monitoring solutions since 1987.
SmarTire offers large fleet, commercial, bus and recreational vehicles patent-protected, before- and after-market wireless technologies and advanced tire-monitoring solutions using its proprietary SmartWave platform. The platform provides a foundation for the addition of multiple wireless sensing and control applications. Initial product releases using the SmartWave platform include the SmartWave(TM) TPMS, which leverages on SmarTire’s background and knowledge in tire monitoring solution. SmarTire Systems maintains operations in North America and Europe.