India Globalization Capital, Inc. (AMEX: IGC.U, IGC.WS, IGC) announced that it conducted a private placement offering of Secured Promissory Notes for an aggregate principal amount of up to $7,275,500. On December 24, 2007 it consummated the initial closing of the Bridge Offering in the total principal amount of $5,300,000.
IGC expects to consummate the second closing in early January 2008, although no assurances can be made that the remaining amount of the Bridge Offering will be consummated. The Notes bear an interest rate of 5% per annum, are due on the earlier of the consummation of a Business Combination, or 12 months from the date of issuance of the Notes. The Notes are secured by shares of IGC-M, a wholly owned subsidiary of IGC, which is the assignee of IGC's acquisition agreements relating to certain proposed business combinations with Sricon, TBL and Chiranjjeevi Wind Energy, Limited. IGC agreed to issue the Bridge Investors up to 754,953 shares of Common Stock following the consummation of a Business Combination.
Copies of the Form 8-K containing information about the Bridge and other relevant documents filed by IGC are available at no charge at the U.S. Securities and Exchange Commission's Internet site.
"This money will allow us to provide down payments towards the purchase of stock in our acquisition targets in India," said Ram Mukunda, IGC's CEO.
About The Proposed Acquisitions:
"The government of India proposes spending around $475 billion on improving and building infrastructure in India, IGC's capital will enable our infrastructure companies to play a key role in helping build out Indian roads, seaports, airports, rail roads and power," said Ram Mukunda. As announced on September 6, and September 27, 2007 the acquisitions are subject to customary closing conditions.
About IGC
Based in Bethesda, Maryland, IGC is a special purpose acquisition company for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more operating businesses with primary operations in India. IGC raised approximately $67.8 million in gross proceeds through its initial public offering consummated in March 2006 and has dedicated its time since the initial public offering to seeking and evaluating business combination opportunities in India. -- India Globalization Capital, Inc.
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