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 and Exchange Act of 1934

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): July 19, 2016

 

 

BIOHITECH GLOBAL, INC.

(formerly known as Swift Start Corp.)

 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware 333-192151 46-2336496
(State of Organization)    (Commission File Number)    (I.R.S. Employer Identification No.)

 

80 Red Schoolhouse Road, Suite 101, Chestnut Ridge, NY 10977

(Address of principal executive offices)

 

Registrant’s telephone number, including area code: 845-262-1081

 

 

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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Merger Act (17 CFR 240.14a -12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Merger Act (17 CFR 240.14d -2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Merger Act (17 CFR 240.13e -4(c))

 

 

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On July 19, 2016, BioHiTech Global, Inc. (the “Company”) entered into a Consulting Service Agreement (the “Agreement”) with Tusk Ventures LLC (“Tusk”) effective August 1, 2016 (the “Effective Date”). Tusk will provide strategic political, regulatory and communications consulting services to the Company, for a term of 12 months from the Effective Date (subject to a 60-day notice of termination by either party). In consideration for the services, the Company will pay Tusk a monthly cash fee of $50,000, which the Company may defer payment on for no longer than four months, at which time all deferred payments shall be due. The Company will also pay Tusk an equity fee equal to $25,000 per month, which initially will take the form of convertible notes and then, upon the mandatory conversion of certain of the Company’s other convertible notes, the monthly equity fee shall be paid in shares of the Company’s common stock based upon the trailing month’s average price per share.

 

 

Item 3.02 Unregistered Sales of Equity Securities.

 

The information required to be disclosed in this Item 3.02 is incorporated herein by reference from Item 1.01.

 

The securities described in Item 1.01 above were offered and sold in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder. Each of the offerings was made to an “accredited investor” (as defined by Rule 501 under the Securities Act). In addition, the sale of securities did not involve a public offering; the Registrant made no solicitation in connection with the sale other than communications with the investor; the Registrant obtained representations from the investor regarding its investment intent, experience and sophistication; and the investor either received or had access to adequate information about the Registrant in order to make an informed investment decision.

 

Item 8.01 Other Events.

 

On July 28, 2016, the Registrant issued a press release announcing that the Company entered into the Agreement with Tusk. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

 

 

Exhibit Number   Description
     
4.1   Form of Convertible Note
99.1   Press Release dated July 28, 2016

 

 

 

 

 

 

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 THEREUNTO DULY AUTHORIZED.

 

 

Date: August 2, 2016 BIOHITECH GLOBAL, INC.
   
   
  By: /s/   Frank E. Celli
    Name: Frank E. Celli
    Title:    Chief Executive Officer

 

 

INDEX TO EXHIBITS

 

 

Exhibit Number   Description
     
4.1   Form of Convertible Note
99.1   Press Release dated July 28, 2016

 

 

 

 

 

 

Exhibit 4.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES UNDER SUCH ACT AND QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE MAKER THAT SUCH REGISTRATION AND QUALIFICATION IS NOT REQUIRED.

 

 

BIOHITECH GLOBAL, INC.

[______________]

SUBORDINATED CONVERTIBLE PROMISSORY NOTE

 

$25,000   _______________, 201(__)

 

FOR VALUE RECEIVED, BioHiTech Global, Inc. (the “Maker”) hereby promises to pay to the order of Tusk Ventures LLC or its successors or assigns (the “Holder”) the principal amount of Twenty-Five Thousand Dollars ($25,000) (the “Principal Amount”).  This Subordinated Convertible Promissory Note shall be referred to herein as the “Note”. This Note is made and delivered by the Maker to the Holder as of the date first written above (the “Original Issue Date”). This Note is subordinate to a series of notes issued in connection with a private placement offing by the Maker dated November 10, 2015, as amended (the “2015 Offering”).

 

1.            Advances .  This Note is made and delivered by the Maker to the Holder as of the date first written above (the “Original Issue Date”) pursuant to the terms of a Consulting Services Agreement between the Maker and the Holder dated July 19, 2016 (the “Consulting Agreement”). 

 

2.            Interest .  Simple interest on the Principal Amount from time-to-time remaining unpaid shall accrue from the date of this Note at the rate of eight percent (8%) per annum.  Interest shall be computed on the basis of a 360 day year and a 30 day month. Interest shall be paid, at the Maker’s option, in cash, or in shares of Maker’s Common Stock or in a mix of both, as further specified herein.

 

3.            Maturity Date .  All amounts, including principal and interest, payable hereunder shall be due and payable on the earliest to occur of (i) twenty four (24) months from the Original Issuance Date (the “Calendar Due Date”), (ii) the listing (the “Listing”) of the Maker’s Common Stock on The Nasdaq Stock Market or NYSE MKT (each, a “National Exchange”), or (iii) a Change of Control (as defined below). Such date shall be referred to herein as the “Maturity Date”.

 

4.            Methods of Repayment .

 

4.1            Mandatory Conversion at Maturity .  On the Maturity Date, all amounts payable hereunder (except for interest, which is subject to payment in accordance with Section 4.3 of this Note) shall be repaid with shares of the Maker’s Common Stock in accordance with the terms of Section 5.1 of this Note.

 

4.2            Optional Conversion prior to Maturity .  Prior to the Maturity Date, all or a portion of the principal payable hereunder, along with a proportional amount of all other amounts then payable under the Note (except for interest, which is subject to payment in accordance with Section 4.3 of this Note), may from time to time, at the sole option of the Holder, be repaid with shares of the Maker’s Common Stock in accordance with the terms of Section 5.2 of this Note. Each date of such an optional conversion shall be referred to herein as an “Optional Conversion Date”.

 

4.3            Method of Interest Payment . Interest payable hereunder shall be paid on the earlier of the Maturity Date or the Optional Conversion Date of the outstanding principal amount of the Note as to which such interest has accrued. Such payment may be made in cash, in shares of the Maker's Common Stock, or in a mixture of both, at the election of the Maker. If the Maker elects to pay any portion of the interest in shares, such shares will be converted in accordance with Section 5.3 of this Note.

 

 

 

 

4.4            No Prepayment Right .  All amounts payable hereunder shall be repaid on the Maturity Date or on one or more Optional Conversion Dates.

 

5.            Conversion of Note.   The following provisions shall govern the conversion into shares of Common Stock of any and all amounts due under this Note.

 

5.1            Mandatory Conversion at Maturity .  On the Maturity Date, all amounts payable hereunder (except for interest, which shall be paid in accordance with Section 5.3 of this Note) shall be paid in shares of the Maker’s Common Stock at a conversion price (the “Mandatory Principal Conversion Price”) equal to the lowest of: (i) $3.75 (the “Closing Price”), (ii) the Listing Price (as defined below), (iii) the Public Offering Price (as defined below), (iv) the Private Offering Price (as defined below), or (v) the Change of Control Price (as defined below).  The “Listing Price” means the lower of the opening and closing National Exchange prices (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) on such day that the Maker’s Common Stock is first traded on a National Exchange. The “Public Offering Price” means the price per share (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid by public investors in an underwritten public offering conducted in connection with the Listing, without regard to any underwriting discount or other offering expense. The “Private Offering Price” means the means the lowest price per share (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid by investors in any private equity, equity-linked or debt financing (other than the 2015 Offering) conducted after the date hereof prior to the Listing, without regard to any broker’s fee or other offering expense. The “Change of Control Price” means the per-share consideration (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid in the Change of Control.

 

5.2            Optional Conversion prior to Maturity .  On each Optional Conversion Date, if any, all principal to be repaid on such date, along with a proportional amount of all other amounts then payable under the Note (except for interest, which shall be paid in accordance with Section 5.3 of this Note) shall be paid in shares of the Maker’s Common Stock at a conversion price (the “Optional Principal Conversion Price”) equal to the Closing Price.

 

5.3            Conversion of Interest . On the Maturity Date and on each Optional Conversion Date, if any, the portion of the interest then payable hereunder that the Maker elects to pay in shares, if any, shall be paid in shares of the Maker’s Common Stock at a conversion price (the “Interest Conversion Price”) equal to the closing public market price (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) of the Maker’s Common Stock on the Trading Day immediately prior to the date of Maturity or such Optional Conversion Date, as applicable.

 

5.4            Conversion Rate .  The number of shares of Common Stock issuable upon conversion pursuant to Sections 5.1, 5.2 or 5.3 shall be determined by dividing (x) the Principal Amount (plus other amounts payable) and the amount accrued interest, as the case may be, to be paid (the “Conversion Amount”) by (y) the Mandatory Principal Conversion Price, the Optional Principal Conversion Price or the Interest Conversion Price, as applicable.

 

5.5            No Fractional Shares .  The Maker shall not issue any fraction of a share of Common Stock upon any conversion.  If the issuance would result in the issuance of a fraction of a share of Common Stock, the Maker shall round up such fraction of a share of Common Stock to the nearest whole share.  The Maker shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion.

 

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5.6            Mechanics of Conversion. Within 20 days of the Maturity Date and each Optional Conversion Date, if any, the Maker shall transmit to the Holder the number of shares of Common Stock representing full repayment of the Conversion Amount being made on such date, and cash to the extent interest due on such date is being paid in cash, together with an explanation of the calculation of the share and cash amounts being transmitted.  Upon receipt of such items, the Holder shall surrender this Note to a common carrier for delivery to the Maker as soon as practicable on or following such date (and shall execute an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction).  The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Maturity Date or Optional Conversion Date, as applicable.

 

5.7            Reservation of Common Stock . Until the Notes are paid in full, the Maker shall at all times keep reserved for issuance under this Note such number of shares of Common Stock as shall be necessary to satisfy the Maker’s obligation to issue shares of Common Stock hereunder assuming all amounts payable under this Note shall be paid in shares of Common Stock (without regard to any limitation otherwise contained herein with respect to the number of shares of Common Stock that may be acquirable upon exercise of this Note).  If, notwithstanding the foregoing, and not in limitation thereof, at any time any of the Notes remain outstanding, the Maker does not have a sufficient number of authorized and unreserved shares of Common Stock (the “Required Reserve Amount”) to satisfy its obligation set forth in this Section 5.7 (such failure, an “Authorized Share Failure”), then the Maker shall immediately take all action necessary to increase the Maker’s authorized shares of Common Stock to an amount sufficient to allow the Maker to maintain the Required Reserve Amount for all the Notes then outstanding.  Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than 60 days after the occurrence of such Authorized Share Failure, the Maker shall, to the extent necessary or advisable in order to cure sure Authorized Share Failure, hold a meeting of its shareholders for the approval of an increase in the number of authorized shares of Common Stock, in connection with such meeting, provide each shareholder with a proxy statement, and use its best efforts to solicit its shareholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the shareholders that they approve such increase.

 

5.8            Adjustments .  The applicable Conversion Price and number and kind of shares or other securities to be issued upon conversion determined pursuant to Section 5 hereof, shall be subject to adjustment from time to time upon the happening of certain events while the Maker’s conversion obligations remain outstanding, as follows:

 

5.8.1            Merger, Sale of Assets, etc.   If the Maker at any time shall consolidate with or merge into or sell or convey all or substantially all of its assets to any other entity, this Note, as to the unpaid Principal Amount thereof and other payments and interest accrued thereon, shall thereafter be deemed to evidence the right to purchase such number and kind of shares or other securities and property as would have been issuable or distributable on account of such consolidation, merger, sale or conveyance, upon or with respect to the securities subject to the conversion or purchase right immediately prior to such consolidation, merger, sale or conveyance.  The foregoing provision shall similarly apply to successive transactions of a similar nature by any such successor or purchaser.  Without limiting the generality of the foregoing, the anti-dilution provisions of this Section 5.8 shall apply to such securities of such successor or purchaser after any such consolidation, merger, sale or conveyance.

 

5.8.2            Reclassification, etc.   If the Maker at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid Principal Amount thereof and other payments and interest accrued thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior to such reclassification or other change.

 

5.8.3            Notice of Adjustment .  Whenever the applicable Conversion Price is adjusted pursuant to this Section 5.8, the Maker shall promptly mail to the Holder a notice setting forth the applicable Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment.

 

6.            Registration; Book-Entry . The Maker shall maintain a register (the “Register”) for the recordation of the names and addresses of the holders of each Note and the Principal Amount of the Notes held by such holders (the “Registered Notes”).  The entries in the Register shall be conclusive and binding for all purposes absent manifest error, and to that extent the Maker and the holders of the Notes shall treat each person whose name is recorded in the Register as the owner of a Note for all purposes, including, without limitation, the right to receive payments of the Principal Amount and interest, if any, hereunder, notwithstanding notice to the contrary.  A Registered Note may be assigned or sold in whole or in part only in accordance with the terms of Section 12.3 of this Note and by registration of such assignment or sale on the Register.

 

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7.            Defaults; Remedies .

 

7.1            Events of Default .  The occurrence of any one or more of the following events shall constitute an event of default hereunder (each, an “Event of Default”):

 

7.1.1           The Maker fails to make any payment when due under this Note;

 

7.1.2           The Maker fails to observe and perform any of its covenants or agreements on its part to be observed or performed under the Purchase Agreement of the 2015 Offering and such failure shall continue for more than 30 days after notice of such failure has been delivered to the Maker by the holders of the 2015 Offering notes;

 

7.1.3           The Maker admits in writing its inability to pay its debts generally as they become due, files a petition in bankruptcy or a petition to take advantage of any insolvency act, makes an assignment for the benefit of its creditors, or consents to the appointment of a receiver of itself or of the whole or any substantial part of its property, or has a petition filed against it be adjudicated a bankrupt, or files a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any State thereof;

 

7.1.4           A court of competent jurisdiction enters an order, judgment, or decree appointing, without the consent of the Maker, a receiver of the Maker or of the whole or any substantial part of its property, or approving a petition filed against the Maker seeking reorganization or arrangement of the Maker under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any State thereof, and such order, judgment, or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof;

 

7.1.5          Any court of competent jurisdiction assumes custody or control of the Maker or of the whole or any substantial part of its property under the provisions of any other law for the relief or aid of debtors, and such custody or control is not terminated or stayed within 60 days from the date of assumption of such custody or control;

 

7.1.6.          This Note ceases to be, or is asserted by the Maker not to be, a legal, valid and binding obligation of the Maker enforceable in accordance with its terms;

 

7.1.7           A judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against the Maker which judgments are not, within 60 days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; provided, however, that any judgment which is covered by insurance or an indemnity from a creditworthy party shall not be included in calculating the $250,000 amount set forth above so long as the Maker certifies that it has not received a written statement from such insurer or indemnity provider denying such coverage (which written statement shall be reasonably satisfactory to the Holder) and if the Maker will receive the proceeds of such insurance or indemnity within 30 days of the issuance of such judgment;

 

7.1.8         A default by the Maker occurs under one or more obligations in an aggregate monetary amount in excess of $250,000 for more than 30 days after the applicable due dates, unless the Maker is contesting the validity of each such obligation in good faith and has segregated cash funds equal to not less than one-half of the disputed amount;

 

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7.1.9         The Maker fails to deliver the shares of Common Stock to the Holder pursuant to and in the form required by this Note or, if required, a replacement Note, more than five Business Days after the required delivery date of such Common Stock or replacement Note;

 

7.1.10         The Maker fails to have reserved for issuance upon conversion of this Note the amount of Common Stock set forth in this Note.

 

7.2            Notice by the Maker .  The Maker shall notify the Holder in writing as soon as reasonably practicable but in no event more 5 Business Days after the occurrence of any Event of Default of which the Maker acquires knowledge.

 

7.3            Remedies .  Upon the occurrence of any Event of Default, all sums due and payable to the Holder under this Note shall, at the option of the Holder, become due and payable immediately without presentment, demand, notice of nonpayment, protest, notice of protest, or other notice of dishonor, all of which are hereby expressly waived by the Maker.  Any payment under this Note (i) not paid within 10 days following the Calendar Due Date or (ii) due immediately following acceleration by the Holder shall bear interest at the rate of 15% from such Calendar Due Date or acceleration, as applicable, until paid, subject to Section 7.5.  To the extent permitted by law, the Maker waives any right to and stay of execution and the benefit of all exemption laws now or hereafter in effect.  In addition to the foregoing, upon the occurrence of any Event of Default, the Holder may forthwith exercise singly, concurrently, successively, or otherwise any and all rights and remedies available to the Holder at law, in equity, or otherwise.

 

7.4            Remedies Cumulative, etc .  No right or remedy conferred upon or reserved to the Holder under this Note, or now or hereafter existing at law or in equity or otherwise, is intended to be exclusive of any other right or remedy, and each and every such right or remedy shall be cumulative and concurrent, and shall be in addition to every other such right or remedy, and may be pursued singly, concurrently, successively, or otherwise, at the sole discretion of the Holder, and shall not be exhausted by any one exercise thereof but may be exercised as often as occasion therefor may occur.  No act of the Holder shall be deemed or construed as an election to proceed under any one such right or remedy to the exclusion of any other such right or remedy; furthermore, each such right or remedy of the Holder shall be separate, distinct, and cumulative and none shall be given effect to the exclusion of any other.

 

7.5            Usury Compliance .  All agreements between the Maker and the Holder are expressly limited, so that in no event or contingency whatsoever, whether by reason of the consideration given with respect to this Note, the acceleration of maturity of the unpaid Principal Amount and interest thereon, or otherwise, shall the amount paid or agreed to be paid to the Holder for the use, forbearance, or detention of the indebtedness which is the subject of this Note exceed the highest lawful rate permissible under the applicable usury laws.  If, under any circumstances whatsoever, fulfillment of any provision of this Note shall involve transcending the highest interest rate permitted by law which a court of competent jurisdiction deems applicable, then the obligations to be fulfilled shall be reduced to such maximum rate, and if, under any circumstances whatsoever, the Holder shall ever receive as interest an amount that exceeds the highest lawful rate, the amount that would be excessive interest shall be applied to the reduction of the unpaid Principal Amount under this Note and other amounts (excluding interest) owed in respect of this Note, and not to the payment of interest, or, if such excessive interest exceeds the unpaid balance of the Principal Amount under this Note and such other amounts (excluding interest), such excess shall be refunded to the Maker.  This provision shall control every other provision of all agreements between the Maker and the Holder.

 

8.            Replacement of Note.   Upon receipt by the Maker of evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Note and (in case of loss, theft, or destruction) of indemnity satisfactory to it, and upon surrender and cancellation of this Note, if mutilated, the Maker will make and deliver a new Note of like tenor in lieu of this Note.

 

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9.            Maker’s Covenants and Agreements .

 

9.1            Restricted Payments .  The Maker shall not, and the Maker shall not permit any of its subsidiaries (if any) to, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any capital stock or all or any portion of any indebtedness, whether by way of payment in respect of principal of, interest on or premium or any other amount due in connection with, such indebtedness if at the time such payment is due or is otherwise made or, after giving effect to such payment, an event constituting, or that with the passage of time and without being cured would constitute, an Event of Default has occurred and is continuing.

 

9.2            Valid Issuance of Securities .  The Maker covenants that the securities issuable upon the conversion of this Note will, upon conversion of this Note, be validly issued, fully paid and non-assessable and free from all taxes, liens and charges in respect of the issue thereof.

 

9.3            Timely Notice .  The Maker shall give the Holder at least 10 days’ advance written notice prior to the closing of a Change of Control, provided that the Holder agrees to be bound by any applicable confidentiality agreement or agreements the Maker shall deem necessary or appropriate.

 

 

10.             Certain Definitions .

 

10.1            “ Business Day ” means any day that is not a Saturday, Sunday, federal holiday or bank holiday in any jurisdiction in which the Maker holds a substantial portion of its assets.

 

10.2           “ Change of Control ” means any liquidation, dissolution, or winding up of the Maker, either voluntary or involuntary, and shall be deemed to be occasioned by, or to include, (i) the acquisition of the Maker by another entity by means of any transaction or series of related transactions (including, without limitation, any stock acquisition, reorganization, merger or consolidation) unless the Maker’s shareholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Maker’s acquisition or sale or otherwise) hold at least a majority of the voting power of the surviving or acquiring entity or its direct or indirect parent entity (except that any bona fide equity or debt financing transaction for capital raising purposes shall not be deemed a Change of Control for this purpose) and (ii) a sale, exclusive license or other disposition of all or substantially all of the assets of the Maker, including a sale, exclusive license or other disposition of all or substantially all of the assets of one or more of the Maker’s subsidiaries, if such assets constitute substantially all of the assets of the Maker and such subsidiaries taken as a whole.

10.3            “ Conversion Price ” means either the Principal Conversion Price or Interest Conversion Price, as applicable.

 

10.4            “ Trading Day ” means a day on which any of the following markets or exchanges on which the Common Stock is listed or quoted is open for trading: the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the OTCQB marketplace or the OTCQX marketplace (or any successors to any of the foregoing).

 

11.            Amendments, Waivers, and Consents .

 

11.1            Amendment and Waiver by the Holders .  This Note, may be amended, modified, or supplemented, and waivers or consents to departures from the provisions thereof may be given, if the Maker and the Holder consent to the amendment.  Such consent may not be effected orally, but only by a signed statement in writing.  Any such amendment or waiver shall apply to and be binding upon the Holder of this Note, upon each future holder of this Note, and upon the Maker, whether or not this Note shall have been marked to indicate such amendment or waiver.  No such amendment or waiver shall extend to or affect any obligation not expressly amended or waived or impair any right consequent thereon.

 

11.2             Severability .  In the event that for any reason one or more of the provisions of this Note or their application to any person or circumstance shall be held to be invalid, illegal, or unenforceable in any respect or to any extent, such provision shall nevertheless remain valid, legal, and enforceable in all other respects and to such extent as may be permissible.  In addition, any such invalidity, illegality, or unenforceability shall not affect any other provisions of this Note, but this Note shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

 

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11.3               Assignment; Binding Effect .  The Maker may not assign its obligations under this Note without the prior written consent of the Holder.  Any attempted assignment in violation of this Section 11.3 shall be null and void.  Subject to the foregoing, this Note inures to the benefit of the Holder and its successors and assigns, and binds the Maker and its successors and permitted assigns, and the words “Holder” and “Maker” whenever occurring herein shall be deemed and construed to include such respective successors and assigns.

 

11.4               Notices Generally .  All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing and will be effective upon receipt. Such notices and other communications may be hand delivered, sent by first class mail, sent by electronic transmission with confirmation of delivery and a copy sent by first class mail, or sent by nationally recognized overnight courier service, to the addresses for Holder and Maker set forth below or to such other address as either may give to the other in writing for such purpose. If a notice is sent via first class mail, it will be deemed to have been received two days after being deposited in the mail. If a notice is sent by nationally recognized overnight courier service, it will be deemed to have been received one day after being deposited with such courier service.

 

Notices to Maker:

BioHiTech Global, Inc.

80 Red Schoolhouse Rd.

Chestnut Ridge, NY 10977

Attention: Chief Executive Officer – Frank E. Celli

With copy to: Chief Financial Officer BioHitech Global, Inc. (at the address above)

 

Notices to Holder:

Tusk Ventures LLC

251 Park Avenue South, 8 th Floor

New York, NY 10010

Attention: Marla Tusk

With a copy to: Brian Wilson

 

11.5               Governing Law; Jurisdiction; Jury Trial . This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.  The Maker hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  The Maker hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address it set forth on the signature page hereto and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note.  Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Maker in any other jurisdiction to collect on the Maker’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder.  THE MAKER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.   This Note shall be deemed an unconditional obligation of Maker for the payment of money and, without limitation to any other remedies of Holder, may be enforced against Maker by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought.  For purposes of such rule or statute, any other document or agreement to which Holder and Maker are parties or which Maker delivered to Holder, which may be convenient or necessary to determine Holder’s rights hereunder or Maker’s obligations to Holder are deemed a part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from this Note.

 

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11.6                   Section Headings, Construction .  The headings of paragraphs in this Note are provided for convenience only and will not affect its construction or interpretation.  All words used in this Note will be construed to be of such gender or number as the circumstances require.  Unless otherwise expressly provided, the words “hereof” and “hereunder” and similar references refer to this Note in its entirety and not to any specific section or subsection hereof.

 

11.7                   Payment of Collection, Enforcement and Other Costs .  If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note, or (b) there occurs any bankruptcy, reorganization, or receivership of the Maker or other proceedings affecting the Maker’s creditors’ rights and involving a claim under this Note, then the Maker shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, attorneys’ fees and disbursements.

 

11.8                    Delays or Omissions .  No delay or omission to exercise any right, power, or remedy accruing to the Holder, upon any breach or default of the Maker under this Note shall impair any such right, power, or remedy of the Holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default therefore or thereafter occurring.  Any waiver, permit, consent, or approval of any kind or character on the part of the Holder of any breach or default under this Note or any waiver on the part of the Holder of any provisions or conditions of this Note must be made in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Note or by law or otherwise afforded to the Holders, shall be cumulative and not alternative.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF , BioHiTech Global, Inc. has caused this Convertible Promissory Note to be executed and delivered on the date set forth above on the cover page of this Note.

 

 

 

 

  BORROWER :  
     
  BIOHITECH GLOBAL, INC.  
     
     
  By:   (SEAL)
    Frank E. Celli, Chief Executive Officer  
       
       

 

 

 

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Exhibit 99.1

 

 

   

 

 

BIOHITECH GLOBAL, Inc.

80 Red Schoolhouse Road, Suite 101

Chestnut Ridge, NY 10977

 

RUBENSTEIN PUBLIC RELATIONS

CONTACT: KRISTIE GALVANI 212-805-3005

KGALVANI@RUBENSTEINPR.COM

 

FOR IMMEDIATE RELEASE

 

BioHiTech Global Announces Partnership with Top Strategic Political,
Regulatory and Communications Consulting Firm Tusk Ventures

 

BioHiTech and Tusk Will Collaborate to Guide the Company’s I
mmediate and Long-Term Goals

 

CHESTNUT RIDGE, NY – July 28, 2016 – BioHiTech Global, Inc. (“BioHiTech”) (OTCQB: BHTG), a green technology company that provides innovative data-driven solutions for food waste disposal, has partnered with Tusk Ventures, the nation’s premier political, regulatory, and communications consulting firm. Under the leadership of founder and CEO Bradley Tusk, the firm will provide BioHiTech with both immediate and long-term guidance at the local, state and national level. Tapping into Tusk's expertise in New York and New Jersey, multi-state national campaigns, regulatory and government affairs, and strategic communications – coordinated by a highly specialized team of professionals – the partnership will focus on leveraging BioHiTech’s innovative technologies and tremendous growth to create a smarter and more effective approach to waste management, both locally and globally.

 

“BioHiTech is known for our commitment to excellence, which is why we are pleased to partner with a premier firm like Tusk Ventures in order to accomplish the many goals we have as a company,” said Frank E. Celli, CEO of BioHiTech Global. “Whether it’s providing businesses around the world the ability to efficiently dispose of and track their food waste, or our expansion of facilities that will lead to significant landfill diversion, we are changing the landscape of an industry. Tusk’s record of working with companies that are disrupting traditional industries is well-established, and together we look forward to continuing these efforts and building upon our company’s own record of success.”

 

“BioHiTech is providing a game-changing solution to address a global problem, so partnering with them was a no-brainer,” said Bradley Tusk, Founder and CEO of Tusk Ventures. “Innovative companies are not rare. What is unique about a company like BioHiTech is that their vision is not only bold, but they have a clear understanding of what they must do to achieve it. Our experienced team will work closely to help guide this vision, ensuring a bright future for their business and, most importantly, a more sustainable planet for generations to come.”

 

About BioHiTech Global

BioHiTech Global (OTCQB: BHTG), “The Company” headquartered in Chestnut Ridge NY, develops and deploys innovative and disruptive waste management technologies. The combined offerings of BioHiTech Global offer our customers a full suite of technology based disposal options capable of having a significant impact on waste generation while providing a true zero landfill environment. With options for both on and off site biological treatment of waste, BioHiTech Global is a leader in zero waste solutions for businesses and municipalities. For more information, please visit www.biohitechglobal.com .

 

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About Tusk Ventures

Founded in 2015, Tusk Ventures specializes in helping companies analyze and navigate regulatory and political challenges at local, state and national levels. Tusk has executed a number of highly sophisticated campaigns that have made it possible for companies to overcome complex challenges. Clients include Uber, FanDuel, Lemonade, Nagare, AltSchool, and Handy. Tusk Ventures has offices in New York, Chicago and Miami. For more information, visit www.tuskventures.com .

 

 

Forward Looking Statements

Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of BioHiTech Global, Inc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BioHiTech Global, Inc. assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”). There may be other factors not mentioned above or included in the BioHiTech’s SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. BioHiTech Global, Inc. assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.

 

Media Contacts:

 

Rubenstein Public Relations

Contact: Kristie Galvani

Tel: 212-843-9205

Kgalvani@rubensteinpr.com

 

Tusk Ventures

Contact: Patrick Muncie

Tel: 212-966-5161

pmuncie@tuskstrategies.com

 

 

Investor Relations Contact:

 

MZ North America

Ted Haberfield

President – MZ North America

Direct: 760-755-2716

Mobile: 858-204-5055

thaberfield@mzgroup.us

www.mzgroup.us

 

Sales Contact:

 

BioHiTech Global, Inc.

Lisa Giovannielli

Marketing Director

Direct: 845-262-1081

lgiovannielli@biohitech.com

www.biohitech.com

 

 

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