SmarTire Systems Inc., a developer of tire pressure and temperature monitoring technology, announces that it has closed the first tranche of a $2.8 million Convertible Debenture private placement financing.
The company says the closing of the first tranche involves the principal amount of $900,000. The second tranche under the private placement will involve another principal amount of $900,000 and will close within five trading days of the date that SmarTire files a registration statement with the Securities and Exchange Commission. The third tranche will involve $1,000,000 in principal amount and will close within five trading days of the date on which the registration statement is declared effective by the Securities and Exchange Commission. Terms of this financing will be released in the Company's 8-K filing.
According to the company, HPC Capital Management introduced SmarTire to the investors and arranged for the financing. SmarTire is obligated to pay HPC Capital Management a placement fee in connection with the private placement. In addition to the $2.8 million, SmarTire has also recently secured financing from two offshore private placements with gross proceeds of $400,000 and a short-term secured promissory note issued to an accredited investor for gross proceeds of $250,000.
SmarTire says it intends to apply the proceeds from these financings to fund ongoing operations, purchase inventory to satisfy current and projected product demand and retire approximately $500,000 of debt obligations.
The securities issued pursuant to these private placements have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act of 1933.
Incorporated in 1987, SmarTire is a public company with offices in North America and the United Kingdom. Additional information can be found at www.smartire.com