Millennium Cell Restructures $2.4 Million in Debentures
Millennium Cell Inc. (Eatontown, NJ), a pure hydrogen technology development company, announced that it has completed the restructuring of $2.4 million of convertible debentures with three institutional investors. The revised debentures are convertible by the holders at $2.25 per share, accrue interest at 6 percent per annum, and mature on September 30, 2007. This restructuring releases $2.4 million of formerly restricted cash for use in operations because there is no letter of credit securing the revised debentures. The three institutional investors had purchased the securities on September 30, 2005, from Ballard Power Systems Inc., the original holder of the debentures issued in November 2002.
"We are pleased to have reached this agreement with our new investors. Not only does this strengthen our balance sheet, but this allows us to take actions that accelerate development of hydrogen batteries for small portable devices in our four target markets," commented Millennium Cell Chief Executive Officer H. David Ramm.