Solar Wind Energy Tower Inc. (fka SWET)

[Cycleman]

Though there are differences, a stock warrant is pretty similar to a stock option; it gives the holder the right to purchase a certain amount of a company's stock at a specific price for a specific period of time.

As to your more specific question, JDF did not really put (nor will it put) $1.5M into the company. In terms of hard cash to the company, JDF will put in a total of $800K.

The purchase agreement between the parties was for the aggregate principal amount of $885K. That's divided into two fundings or tranches. The first funding occurred back in June in the principal amount of $555K, which consisted of $500K advanced to SWET. The difference was eaten up in $5K in expenses incurred by JDF and 10% prepaid interest. The second tranche would be in the principal amount of $330K, consisting of a cash payment to SWET of $300K and 10% pre-paid interest.

You only get to the $1.5M number by adding in a combination of the convertible debt and additional equity via potential warrant exercises. But SWET won't see any of that.

Hey Nomad ... how do you like my paragraphs?