Heavy-duty supplier Clean Diesel Technologies Inc. said it has converted about $8.9 million in total indebtedness into shares of CDTI’s common stock.
The debt conversion significantly strengthens the balance sheet and represents the final step in regaining compliance with Nasdaq’s minimum stockholders’ equity rule, according to Oxnard, California-based company.
“By restructuring our balance sheet, we have achieved a major milestone in our plan to establish sustainable capital and cost structures for the company,” Matthew Beale, CEO of CDTI, said in a statement. “The equitization of debt provides us with the flexibility to prioritize resource allocation to operating activities as we seek to accelerate the commercialization of our advanced materials and high-value catalyst strategy.”
On Aug. 25, shareholders approved debt conversion transactions with Kanis S.A. and Lon E. Bell, the company said. Combined with the conversion of debt held by Haldor Topsøe A/S, CDTI issued 5.5 million shares of the common stock in exchange for the extinguishment of $8.9 million of total indebtedness.
The actions have enabled CDTI to regain compliance with Nasdaq’s listing rule to maintain a minimum stockholders’ equity of $2,500,000, the company said.
