Clean TeQ Holdings (ASX: CLQ) has snagged a convertible note investment of $1.84 million from mining identity Robert Friedland which would give him a 11.35% interest in the company.
Friedland will acquire 18,406,116 by way of unsecured convertible notes.
There is also a provision for Friedland to subscribe for a further 17,317,866 unsecured convertible notes which, if also fully converted to ordinary shares, would take his interest in Clean TeQ to 19.9%.
The total subscription price for those further notes will be approximately $1.73 million.
Clean TeQ was founded in 1990, with expertise in separation and purification technologies for water treatment and metals recovery.
Clean TeQ will also appoint up to two nominees of Mr Friedland to the Clean TeQ Board.
The initial investment by Friedland in the company does not require any shareholder or other approvals and will be completed immediately.
The investment is subject to completion of due diligence on Clean TeQ and approval by Clean TeQ shareholders at a General Meeting,
The convertible notes will have a term of three years pay a 10.0% p.a. coupon and may be converted on a one-for-one basis at any time before their maturity date.
Clean TeQ said it recently "has been challenged financially as a result of timing issues relating to license fees and its bank overdraft facilities."
Clean TeQ said the investment by Friedland is a timely boost to the Company's working capital and provides a solid base from which to secure the financial future of the business.
It said it is aiming for the release of the $3.5 million in license fees (net of research and development cost reimbursements paid to Clean TeQ) to the company by Clean World Japan Limited (the corporate entity undertaking the Company's joint venture business in Japan with Nippon Gas).
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