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Beacon Power Prices $20.7 Million Public Offering of Common Stock and Warrants
Press Release
Source: Beacon Power Corporation
On 8:29 am EST, Friday December 4, 2009
Buzz up! 0 Print.Companies:Beacon Power Corporation
TYNGSBORO, Mass.--(BUSINESS WIRE)--Beacon Power Corporation (Nasdaq: BCON - News), a company that designs, develops and is commercializing advanced products and services to support more stable, reliable and efficient electricity grid operation, today announced that it has priced an underwritten public offering of 38.1 million units at a price to the public of $0.544 per unit. Net proceeds, assuming no exercise of the warrants and additional investor rights warrants, and after underwriting discounts and commissions and estimated expenses, will be approximately $19.2 million.
Related Quotes
Symbol Price Change
BCON 0.64 0.00
Each unit consists of one share of common stock, a warrant to purchase 0.5 of a share of common stock and an additional investor rights warrant to purchase 0.5 of a share of common stock. The shares of common stock, warrants and additional investor rights warrants are immediately separable and will be issued separately. The warrants are exercisable immediately after issuance and have a five-year term and an exercise price of $0.70. The additional investor rights warrants are exercisable immediately after issuance and until August 31, 2010, and have an exercise price equal to 85% of the volume weighted average trading price of the common stock for the five consecutive trading days immediately prior to the exercise date, but in no event less than $0.272 per share.
The net proceeds from the offering will be used for general corporate purposes, which may include the funding of approximately $13 million towards Beacon’s 20 MW flywheel frequency regulation plant in Stephentown, New York, as part of the equity contribution needed to satisfy loan closing conditions under the Department of Energy’s loan guarantee program. Funds may also be used for the payment of associated loan closing costs and ongoing working capital requirements. The offering is expected to close on or about December 9, 2009, subject to the satisfaction of customary closing conditions.
Lazard Capital Markets LLC is acting as the sole book-running manager for the offering. Copies of the final prospectus supplement and accompanying base prospectus relating to this offering can be obtained at the SEC's website at sec.gov or from Lazard Capital Markets LLC at 30 Rockefeller Plaza, 60th Floor, New York, NY 10020 or via telephone at (800) 542-0970.
This press release is not an offer to sell or the solicitation of an offer to buy these securities, nor shall it constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation or sale is unlawful...
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