$CYPW, LAST PR SHOWS THAT THE PPS .12 CENTS,, please read
The notes automatically convert to common stock of WHE GEN at a price of $.12 per share upon the closing of the first $1 million in the subsidiary’s planned $2 million “A Round” common stock funding.
WHE Generation Corp. (“WHE GEN”), a 74% owned subsidiary of Cyclone Power Technologies Inc. (the “Company”), closed its Seed Round of funding in the amount of $350,000 on July 30, 2014. The financing was led by Laird Q. Cagan, co-founder and Managing Director of Cagan McAffee Capital Partners LLC in Cupertino, CA, and joined by 14 other individual and strategic accredited investors.
As a closing condition to the transaction and use of a material portion of the proceeds of the Seed Round funding, the Company paid the remaining balance of its senior secured debenture with TCA Global Credit Master Fund L.P. The payment fully retired that long-term liability and will release all of the Company’s assets from a security interest and lien held by TCA.
The Seed Round funding was structured as several promissory notes issued by WHE GEN, bearing 6% interest and maturing in 12 months. The notes automatically convert to common stock of WHE GEN at a price of $.12 per share upon the closing of the first $1 million in the subsidiary’s planned $2 million “A Round” common stock funding. The Seed Round and A Round financings were described in the Company’s Separation Agreement with WHE GEN, as approved by Cyclone’s Board of Directors, and filed with the Company’s Current Report on Form 8-K on July 23, 2014. Assuming the full conversion of the Seed Round notes to WHE GEN common stock, Cyclone would continue to own approximately 43% of its subsidiary.
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