Composite Technology Corporation has entered into definitive securities purchase agreements with six institutional investors, to raise $3.5 million in gross proceeds through the sale of secured convertible notes with a fixed conversion price of $1.55.

The investors will also receive warrants to purchase 750,000 shares of common stock at an exercise price of $1.55 per share ('Series A") and warrants to purchase 2 million shares of common stock at an exercise price of $2.00 per share ('Series B").

These warrants shall expire 36 months following issuance; however, the Company may accelerate the exercise of the Series B warrants by giving notice, subject to certain conditions including the trading price of CTC common stock during any 10 consecutive trading days is at all times during that period no less than $2.50.

Lane Capital Markets participated as a principal in this transaction and acted as the placement agent and financial advisor.