Someone is betting $4m dollars that the price will be higher then .28 in Aug 2007.
I think they are right!
Each share of Series B Convertible Preferred Stock is initially convertible into 100 shares of E21's Common Stock, resulting in a Common Stock price per share to the investors of $0.17. At the subsequent closing, each investor received two additional warrants, one warrant to purchase 3,750,000 shares of E21's Common Stock at an exercise price of $0.22 per share if the warrant is exercised on or before July 31, 2007, and $0.28 per share if the warrant is exercised on or after August 1, 2007, and one warrant to purchase 5,073,530 shares of E21's Common Stock at an exercise price of $0.28 per share. All of the warrants issued by the Company in the financing are exercisable at anytime prior to January 31, 2009 and may only be exercised through a cash payment to the Company. The exercise of the warrants issued at the initial closing and the subsequent closing in full will result in an additional $9,000,000 equity investment in the Company.
