Blockman, They got $2,970,000 from Cornell Capital in an agreement closed, July 10, 2006, according to the 8-K filed with the SEC, July 14, 2006.
The company, at its option has the right, with three days advance written notice, to redeem a portion or all amounts outstanding under this Debenture prior to the Maturity Date(July 10, 2008) provided that the closing price of the Common Stock, is less than $.013 at the time of the redemption.<<IN OTHER WORDS IF THE STOCK IS WORTH MORE, CORNELL WANTS TO SELL THE WARRANTS INTO THE OPEN MARKET AND MAKE MORE MONEY>> In the event of a redemption, the Company is obligated to pay an amount equal to the principal amount being redeemed plus a 15%redemption premium, and accrued interest.
No later than November 1st (maybe a month or two sooner, if the Registration Statement is declared effective by the SEC) , SaVi has to start making a Monthly Mandatory Redemption Amount of $225,000 plus accrued interest.(10% annual)
In connection with the Purchase agreement, SaVi agreed to issue Cornell warrants to purchase an aggregate 2,900,000,000 shares of Common Stock of SaVi exercisable for a period of five years as follows:
Number of Warrants Exercise Price
------1,000,000,000 ------$ -0.003
------1,000,000,000 ------$ -0.006
--------300,000,000 ------$ -0.01
---------200,000,000 -----$ 0.015
--------150,000,000 -----$ 0.02
--------100,000,000 -----$ 0.03
------60,000,000 -----$ 0.05
------40,000,000 -----$ 0.075
------30,000,000 -----$ 0.10
------20,000,000 -----$ 0.15
All the Warrants were issued upon closing. The company also issued to Cornell 30 million shares of restricted common stock as a commitment fee.
So I think, if they start production w/o too much fanfare, so the share price stays low or close to 0.013 or if China hands them a big licensing check, they could pay this off early, avoiding massive dilution.
You can go to Yahoo Finance and find the complete 8-K under SVMI.OB. I tried to put the main parts of the agreement here including the part that says they can pay it off early.
FlSun
