Form 8-K for BLUE EARTH, INC.

10-Jul-2013

 

Other Events, Unregistered Sale of Equity Securities

 

Item 8.01 Other Events.

 

Between May 4 and June 3, 2013, the Company issued an aggregate of 903,500 shares of Series C Convertible Preferred Stock at $1.00 per share of Common stock with a face value of $10.00 per share and 4,517,500 Common Stock Purchase Warrants to 71 different accredited investors. The shares were issued in transactions that were exempt from the registration requirements of the Securities Act pursuant to Section 4 (a)(2) of the Securities Act of 1933, as amended, which exempts transactions by an issuer not involving any public offering and/or pursuant to Regulation D promulgated under the Securities Act. Commissions in the aggregate amount of $371,000 equal to 10% of the gross proceeds were paid to Colorado Financial Services Corp. ($54,500) for the issuance of $545,000 of Series C Preferred Stock; Security Research Associates ($191,500) for the issuance of $1,915,000 of Series C Preferred Stock; National Securities Corp ($95,000) for the issuance of $950,000 of Series C Preferred Stock; and American Trust Investment Services, Inc. ($30,000) for the issuance of $300,000 of Series C Preferred Stock. An aggregate of 371,000 placement agent warrants were issued exercisable at $1.75 per share for five years from their respective dates of issuance

 

Item 3.02 Unregistered Sale of Equity Securities

 

See Item 8.01 above. In addition, the increase in the number of restricted shares of Common Stock issued and outstanding since the filing of the Company's Current Report on Form 10-Q for the period ended March 31, 2013 was less than the 5% requirement for smaller reporting companies, as the increase was primarily of shares registered with the SEC.

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