Issuer: Beacon Power Corp.
Description: Develops flywheel electric storage
systems for computer, commercial,
and manufacturing facilities.
Location: Woburn, Mass.
Offering: Up to $115 million in shares.
Shares Outstanding
After Offering: N/A
Price talk: N/A
Market Cap: N/A
Underwriters: Salomon Smith Barney, Banc of
America Securities LLC, CIBC
World Markets
Proceeds: For general corporate purposes,
including research and development,
sales and marketing expenses,
working capital, capital
expenditures and potential
acquisitions.
Proposed Symbol: BCON
Dividend: None planned.
---Earnings---
Three months ended March 31:
2000 1999
Revenue None $33,000
Net income (3,019,000) -a (1,184,000)
Net income (3,201,000) (1,346,000)
available to
common holders
Year Dec. 31
1999 1998
Revenue $269,000 None
Net income (5,672,000) -a (4,793,000)
Net income (6,630,000) (4,912,000)
available to
common holders
Note: Figures in parentheses are losses.
a. Pro forma losses, reflecting the planned conversion of preferred stock into common, were 43 cents a share for first quarter 2000 and 84 cents for full-year 1999.
---Risk Factors---
Risk factors are a limited operating history; history of losses that are expected to continue until at least 2002; limited experience manufacturing commercial quantities of flywheel energy storage systems; possible failure to meet product development and commercialization goals; uncertainty whether products will achieve market acceptance; dependence on third parties for key components; intense competition; government regulations; possible product liability claims; possible safety failures by company or competitors; possible need for additional financing that may not be available; and possible difficulty managing expanding operations.
Other risks include dependence on key personnel; dependence on a limited number of large customers; vagaries of international marketing, distribution, and service; possible inability to protect intellectual property; control by existing stockholders; possible inability to hire or retain key personnel; lack of a prior public market for the stock; possibly extreme stock-price fluctuations; general economic and industry conditions that could affect stock price; immediate and substantial dilution; antitakeover provisions; future stock sales that could affect share price; and lack of dividends.
---Management---
Name Age Position
William E. Stanton 57 President, chief
executive
Maureen A. Lister 38 Chief administrative
officer; vice president,
operations management
James M. Spiezio 52 Chief financial officer;
vice president, finance
Biographies:
STANTON was named a director in 1997 and president and chief executive in 1998. He previously was chief operating officer of SatCon Technology Corp. (SATC). Before that, he was with Charles Stark Draper Laboratory, where he was vice president, operations, and vice president, corporate development.
LISTER joined the company as chief financial officer and vice president of finance in 1998 and later assumed her current positions. She previously was chief financial officer and vice president, finance, at manufacturing and retail company Pryscilla of Boston Inc. Before that, she was chief financial officer at Cahners Direct Marketing Systems and vice president, finance and operations, at Rigby, a publisher and distributor.
SPIEZIO was named vice president of finance, treasurer, and chief financial officer in May 2000. He previously was with Starmet Corp. (STMT), where he spent seven years as financial chief and five years as president of a wholly-owned manufacturing facility. He has also held financial management positions with United Technologies Corp. (UTX), Pratt & Whitney Aircraft Group and General Electric Co. (GE).
---Shareholders---
Shareholder Shrs Before Offer After Offer
(percent owned)
SatCon Technology 4,934,258 (33.3%) N/A
Perseus Capital LLC 5,097,357 (30.8%) N/A
DQE Enterprises Inc. -b 1,854,325 (12.2%) N/A
Mechanical Technology 1,440,571 ( 9.8%) N/A
Inc. (MKTY)
GE Capital Equity 1,428,571 ( 9.7%) N/A
Investments Inc. -c
Micro-Generation
Technology Fund 1,354,118 ( 8.9%) N/A
Beacon Group Energy
Investment Fund 1,080,428 ( 7.3%) N/A
b. DQE Enterprises is owned by DQE Inc. (DQE).
c. GE Capital is owned by General Electric Co. (GE).
Note: All of the above material has been taken from documents the company filed with the Securities and Exchange Commission. |
