Californian packaging manufacturer EarthShell Corporation has raised US$10m in a secured convertible debenture financing with a group of institutional investors. The secured convertible debentures are initially convertible by the holders into shares of EarthShell common stock at a conversion price of US$1.30 per share. As part of the transaction, EarthShell issued to the investors warrants to purchase 2.5 million shares of its common stock at an initial exercise price of US$1.20 per share.