SCOTTSDALE, Ariz., May 18, 2015 /PRNewswire/ -- Abtech Holdings, Inc. (OTC QB: ABHD) ("AbTech" or the "Company"), a full-service environmental technologies and engineering firm providing innovative water pollution and contamination solutions to communities, industry and governments, today announced that it has secured $1.4 million in a private offering of 7.5% secured promissory notes with accompanying warrants. The invested amount is made up of $650,000 from a new investor, $650,000 from a long standing existing investor and $100,000 from AbTech's Chief Technology Officer, Upen Bharwada. The common theme among these investors is a belief that the Smart Sponge technology carries significant commercial and environmental value.
AbTech CTO, Upen Bharwada commented, "A great deal of my life's work has been focused on filtration technologies. I have developed capabilities as well as tested a great many variations on other inventor's separation technologies, and believe that the Smart Sponge® platform has an extremely powerful commercial utility in industrial applications. I am eager in my role as CTO, to layer on additional capabilities to this elegantly simple, yet highly cost effective platform."
The notes mature in one year and the accompanying warrants are for an aggregate of 2.24 million common shares with an exercise price equal to the market value of the Company's common stock on the date of issuance. The warrants expire five (5) years after the date of issuance. The Company may extend the maturity date of the notes up to two times by 90 days each. If the first extension option is exercised, the interest rate will increase to 9.5% per annum. If the second extension option is exercised, the interest rate will increase to 11.5% per annum. With each extension option that the Company elects to exercise, the number of warrant shares increases by 10%. AbTech intends to use the proceeds from this raise for operating capital.
ABOUT ABTECH HOLDINGS, INC. (OTC QB: ABHD) AND ABTECH INDUSTRIES, INC.
AbTech Industries, Inc. (a subsidiary of Abtech Holdings Inc.) is a full-service environmental technologies and engineering firm dedicated to providing innovative solutions to communities, industry and governments addressing issues of water pollution and contamination. Its products are based on polymer technologies capable of removing hydrocarbons, sediment and other foreign elements in stormwater runoff (ponds, lakes and marinas), flowing water (curbside drains, pipe outflows, rivers and oceans), and industrial process and wastewater. AbTech's offerings include the ground-breaking new antimicrobial technology called Smart Sponge® Plus. This technology is effective in reducing coliform bacteria found in stormwater, industrial wastewater, and municipal wastewater. Smart Sponge® Plus is registered with the Environmental Protection Agency (Registration #86256-1). AbTech's teams of water treatment technology experts, civil and environmental engineers, and field operations specialists develop solutions to improve the quality of our limited water resources. AEWS Engineering (a subsidiary of Abtech Holdings, Inc.), is an independent civil and environmental engineering firm partnered with top research and engineering universities. By focusing on bringing new engineering and technology innovation to the water infrastructure sector, AEWS is positioned to be at the forefront of stormwater Best Management Practices development and to deliver the latest in design excellence to its customers. For more information please visit www.abtechindustries.com. More information on AEWS Engineering can be found at www.aewsengineering.com.
This news release contains "forward-looking statements" which are not purely historical and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
SOURCE Abtech Holdings, Inc.