Attached files
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EX-4.2 - CONVERTIBLE PROMISSORY NOTE - SOLAR WIND ENERGY TOWER, INC. | cleanwind_8k-ex0402.htm |
EX-4.3 - AMENDMENT NO. 1 TO THE CONVERTIBLE PROMISSORY NOTE - SOLAR WIND ENERGY TOWER, INC. | cleanwind_8k-ex0403.htm |
EX-4.1 - SECURITIES PURCHASE AGREEMENT - SOLAR WIND ENERGY TOWER, INC. | cleanwind_8k-ex0401.htm |
UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 3, 2011
CLEAN WIND ENERGY TOWER, INC.
(Exact name of registrant as specified in its charter)
Nevada
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000-53035
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82-6008752
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(State of Other Jurisdiction of
Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification Number)
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1997 Annapolis Exchange Pkwy., Suite 300
Annapolis, Maryland 21401
(Address of principal executive offices)
(410) 972-4713
(Registrant's telephone number, including area code)
Stephen M. Fleming, Esq.
Fleming PLLC
49 Front Street, Suite 206
Rockville Centre, New York 11570
Phone: (516) 833-5034
Fax: (516) 977-1209
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01
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Entry Into A Material Definitive Agreement
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Item 2.03
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Creation of a Direct Financial Obligation
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Item 3.02
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Unregistered Sales of Equity Securities
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On October 3, 2011, Clean Wind Energy Tower, Inc. (the “Company”) entered into a Securities Purchase Agreement with Asher Enterprises, Inc. ("Asher"), for the sale of an 8% convertible note in the principal amount of $32,500 (the "Note"). The financing closed on October 6, 2011.
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on July 5, 2012. The Note is convertible into common stock, at Asher’s option, at a 69% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 120 days thereafter, (ii) 145% if prepaid 121 days following the closing through 150 days following the closing and (iii) 150% if prepaid 151 days following the closing through 180 days following the closing. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
Asher has agreed to restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $32,500.
The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act") for the private placement of these securities pursuant to Section 4(2) of the Act and/or Regulation D promulgated there under since, among other things, the transaction did not involve a public offering, Asher is an accredited investor, Asher had access to information about the Company and their investment, Asher took the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities.
In addition, on September 27, 2011, the Company and Asher amended the convertible note dated July 27, 2011 in the amount of $45,000 issued to Asher to increase the discount on the conversion price to 69%.
Item 9.01
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Financial Statements and Exhibits
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(c) Exhibits.
Exhibit
Number
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Description
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4.1
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Securities Purchase Agreement by and among the Company and the Asher Enterprises, Inc., dated October 3, 2011
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4.2
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Convertible Promissory Note issued to Asher Enterprises, Inc.
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4.3 | Amendment No. 1 to the Convertible Promissory Note dates September 27, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CLEAN WIND ENERGY TOWER, INC.
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Date: October 7, 2011
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By:
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/s/ Ronald W. Pickett
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Ronald W. Pickett
CEO President and Chairman
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