Well, it's dilution, but it will certainly help the balance sheet which was needed.
Composite Technology Raises $15 Million in Private Placement
Tuesday February 13, 8:00 am ET
IRVINE, Calif., Feb. 13 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC - News) is pleased to announce that it completed a private placement of convertible debentures and warrants to institutional and accredited investors resulting in total gross proceeds of approximately $15.6 million. CapStone Investments acted as the placement agent for the investment with assistance from Lane Capital Markets.
Under the terms of the financing, CTC sold debentures that are convertible into approximately 15.05 million shares of common stock at the conversion price of $1.04 per share, and warrants exercisable for up to approximately an additional 7.5 million shares of common stock at an exercise price of $1.13 per share. The warrants have a term of 36 months commencing on February 12, 2007. The proceeds from the financing will be used for working capital, and general corporate purposes.
Further details relating to the financing are included in the Form 8-K filed by CTC with the Securities and Exchange Commission ("SEC").
The securities were offered to accredited investors in reliance on an exemption from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The offering has not been registered under the Securities Act or any state securities of "blue sky" laws, and the securities may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. CTC agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the resale of the shares issuable upon conversion of the debentures and exercise of the warrants. This press release does not and shall not constitute an offer to sell of the solicitation of an offer to buy securities.
CapStone Investments, a member of the National Association of Securities Dealers (NASD), has provided a wide range of institutional services, including investment banking, research, deal origination, and capital introduction services since 1994. CapStone's Investment Banking Group identifies, structures and executes diverse and innovative market transactions for both private and public companies. Capstone places importance on combining sector and product specialization with strong client relationships to ensure that clients receive competitive quality solutions and advice. |
