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EX-4.2 - EXHIBIT 4.2 - Solar Energy Initiatives, Inc.ex42.htm
EX-4.1 - EXHIBIT 4.1 - Solar Energy Initiatives, Inc.ex41.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): June 29, 2010

Solar Energy Initiatives, Inc.
(Exact name of registrant as specified in its charter)

Delaware
333-148155
20-5241121
(State of Other Jurisdiction of Incorporation)
(Commission File Number)
IRS Employer Identification Number)

818 A1A North
Suite 201
Ponte Vedra Beach, Florida 32082
(Address of principal executive offices)

(904) 644-6090
 (Registrant's telephone number, including area code)
 
Copies to:
Stephen M. Fleming, Esq.
Law Offices of Stephen M. 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):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 

 
 
 
 
Item 1.01       Entry Into A Material Definitive Agreement
Item 2.03       Creation of a Direct Financial Obligation
Item 3.02       Unregistered Sales of Equity Securities
 
On June 29, 2010, Solar Energy Initiatives, 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 $100,000 (the "Note").  The financing closed on July 2, 2010.  

The Note bears interest at the rate of 8% per annum.  All interest and principal must be repaid on June 30, 2011.  The Note is convertible into common stock, at Asher’s option, at a 39% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion.  The Note contains a prepayment option whereby the Company may make a payment to Asher equal to 150% of all amounts owed under the Note during the 90 day period beginning on the date of issuance of the Note and expiring on the 90 date anniversary.  

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 on July 2, 2010 was $97,000.
 
In addition, the Company compensated $3,000 to Naidich, Wurman, Birnbaum & Maday, LLP for services to complete the Note and Purchase Agreement.
 
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.

Item 9.01       Financial Statements and Exhibits

(c) Exhibits.

                       
Exhibit Number      
 
Description
4.1
 
Securities  Purchase  Agreement, dated  June 29, 2010, by and among the Company and the Asher Enterprises, Inc.
     
4.2
 
Convertible Promissory Note issued to Asher Enterprises, Inc.

 
 
 
 
 

 
 
 
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.
 
 
SOLAR ENERGY INITIATIVES, INC.
 
       
Date:  July 9, 2010 
By:
/s/ David Fann  
 
   
David Fann
 
   
Chief Executive Officer