Astris Energi Inc. (Mississauga, ON), a developer of alkaline fuel cell technology, announced that it has closed a convertible debenture financing for gross proceeds of CDN$420,000. The debenture was available for subscription to "Canadian accredited investors" only and included a coupon for 6%, payable in common shares upon conversion or maturity.
Each debenture is convertible into common shares at a conversion rate that in no case shall be less than USD$0.20 or more than USD$0.70. The debentures mature on December 10, 2005, 270 days from the date of issuance. Astris intends to file a registration statement. Total net proceeds were CDN$378,000. Proceeds from the financing will be used for operations, with a focus on the marketing and demonstration of Astris' line of AFC generators to prospective partners.
"The debenture provides us with bridge financing that will be used until the previously announced second, larger financing is completed," said Astris Energi Vice President of Finance Anthony Durkacz. "It will enable us to aggressively pursue channel partners for the commercialization of our line of AFC generators and use the resulting sales orders to drive our production."
