T3 Secures $4.3M in Debt FinancingWednesday, November 28, 2012
Costa Mesa-based electric vehicle maker T3 Motion Inc. has secured $4.3 million in debt financing from unnamed private investors.
The financing included converting about $1.2 million in existing debt, resulting in $2.8 million in gross cash proceeds for the company.
Under the deal, investors have the option to convert the debt offering into common stock at 10 cents per share.
T3, which makes three-wheeled cruisers, plans to use the proceeds for general working capital purposes, including purchase parts, sales and marketing, and research and development.
The low-speed, stand-up vehicles are used by security guards, police officers, dock workers and others.
The company has raised about $40 million through private investments, venture capital and public offerings.
T3 shares are traded on the New York Stock Exchange MKT. Last month it received a delisting notice for failing to comply with financial operating standards. The company had been under what’s called a “plan of compliance” since August, but failed to regain compliance by the Nov. 20 deadline.
The company plans to appeal the decision and could see its stock moved to the over the counter bulletin board.
T3 has lost nearly $5 million through the first nine months of the year, while generating about $3.7 in sales through that time frame.