Solar Wind Energy Tower, Inc. (OTCQB: SWET), the inventor of large Solar Wind Downdraft Tower structures, announced today that it has entered into a financing agreement with JDF Capital Inc. under which JDF Capital Inc. will provide up to $1,585,000 through a combination of convertible debt and additional equity via potential warrant exercises.
The initial round of funding in the amount of $555,000 was completed on June 9, 2014. The second round of funding in the amount of $330,000 is due within 15 days of the effectiveness of a registration statement, which must be filed within 60 days from the closing date. Also included in the financing are two warrants with an exercise price of $0.04 and $0.05, expiring in 3 months and 5 months, respectively, after the registration statement becomes effective and which can each raise the Company an additional $350,000.
JDF Capital President John Fierro commented, “We have invested in many public companies and we always look for seasoned management. In the case with SWET we found not only the management team in place but a company that is positioned to transition and capitalize from all of their research and development to a full development company.”
Solar Wind Energy Tower CEO Ron Pickett commented on the transaction, “On our conference call last December, we discussed how the Company was using short term notes that converted to shares from multiple lenders to finance operations and that the Company did not believe these lenders were investing in the long term interests of the Company. After establishing an initial relationship with the Company last October and following our own due diligence process, we found JDF Capital Inc. to be an investor that we believe is more interested in the long-term success of the Company and as such, are pleased to have selected them to provide the capital necessary to move forward with our operations.
The funds will be used not only towards operating capital, but also towards retiring existing notes. We look forward to working with JDF Capital Inc. in these efforts, and to together achieving our long-term growth prospects.”
Pickett added, “All one has to do is look at our financials and realize that SWET has incurred approximately $10 million in costs achieving our patents, proprietary information, and securing our first domestic site with entitlements, yet our market cap today is less than $10 million. We believe this represents a great opportunity to invest for those who believe in the Company and our plans for growth.”
For more details on this transaction, please review the Company’s 8K filed with the Securities & Exchange Commission on Friday, June 13th.