How CCTC is strategically managing its resources,
seccessfully, to the overall benefit of the company and its shareholders.
Form 10-Q for CLEAN COAL TECHNOLOGIES INC.
11-May-2010
Quarterly Report
Effective April 24, 2008, we entered into an exclusive agreement for Cappello Capital to assist us with financial advisory services, specifically the raising of capital through various potential transactions, including, but not limited to, private placements, strategic alliances, sale or merger, divestitures, recapitalization, or strategic acquisition. The agreement provided for us to compensate Cappello Capital through warrants with an exercise price
of $0.05 per share to purchase up to 5% of the Company on a fully diluted basis, with 2% of the warrants being due at the time of the signing of the agreement. Additionally we would be required to pay Cappello Capital a percentage of any financial transaction closed during the term of the agreement. We exercised our cancellation option on September 24, 2009 with Cappello Capital without any transaction being completed. However, under the terms of the agreement, Cappello exercised their signing warrants for a total of 8,814,483 common shares.
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The shares were issued February19, 2009, and the issuance caused us to record a gain of $7,598,481 for the three months ended March 31, 2009.
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The derivative value at each measurement date and the resulting gain or loss from the change in value is determined using the Black Scholes option pricing model.
When our stock price goes up, our derivative value tends to increase and when our stock price goes down our derivative value tends to decrease. Our stock price went down between January 1, 2009 and February 19, 2009 which caused the liability to decrease resulting in the gain. There were no derivatives at March 31, 2010.
