BioHiTech enters securities purchase agreement

BioHiTech Global Inc., a green technology company headquartered in Chestnut Ridge, New York, has announced that it has entered into a securities purchase agreement with a single, accredited investor to sell an aggregate of 333,401 shares of newly created Series A preferred stock convertible into the company’s common stock at a fixed price of $5 per share and warrants to purchase 333,401 common stock at $5 per share for an aggregate investment of up to $1,667,000.

Under the terms of the agreement, the investor purchased 133,334 shares of Series A shares from the company and received warrants to purchase an additional 133,334 shares of common stock for a purchase price of $666,670 at a first closing that took place on Oct. 31, 2017. The company received net proceeds of $600,000 after giving effect to an original issue discount of 10 percent. BioHiTech has the option, at its sole discretion, to sell an additional $1 million of Series A preferred stock under the same terms 30 days after the first closing.

“We are pleased to have completed this important equity financing that will help us to fuel the growth of our business while further improving our balance sheet,” Frank E. Celli, CEO of BioHiTech, says. “We continue to work diligently to build our growing recurring digester revenue base, forward the planned rollout of our HEBioT facilities and to enhance our corporate profile in order to build lasting value for our stockholders for years to come.”