On May 23, 2000, Beacon Power Corporation ("Beacon Power"), an affiliate of SatCon Technology Corporation (the "Registrant"), completed a $28.5 million private placement of Beacon Power's Class F Preferred Stock and warrants to purchase shares of Beacon Power's Common Stock with Perseus Capital, L.L.C.
("Perseus Capital"), DQE Enterprises, Inc. ("DQE Enterprises"), Micro-Generation Technology Fund, L.L.C. ("Micro-Generation Fund"), GE Capital Equity Investments, Inc. ("GE Capital"), Mechanical Technology Incorporated
("Mechanical Technology"), Penske Corporation ("Penske") and The Beacon Group Energy Investment Fund II, L.P. ("Beacon Group"). GE Capital, Mechanical Technology and Perseus Capital each invested $6.0 million. Beacon Group invested
$4.5 million, and DQE Enterprises, Penske and Micro-Generation Fund each invested $2.0 million.
Beacon Power plans to utilize the proceeds from the private placement to complete the commercialization of its flywheel energy storage system and to begin establishing production capability. As of the closing of the private placement, the Registrant owned 30% of the outstanding capital stock of Beacon Power on a common equivalent basis and 26% on a fully diluted basis after giving consideration to all outstanding warrants and options of Beacon Power. |
