Active Power Closes $14 Million Private Placement of Common Stock
Active Power, Inc. announced that it completed a private placement of approximately $14 million of common stock to institutional investors. The transaction involved the sale of 10,000,000 shares of common stock at a purchase price of approximately $1.40 per share. Active Power intends to use the net proceeds from the placement to grow the business in new and expanding markets and for working capital purposes. RBC Capital Markets acted as the exclusive placement agent for the offering.
"This transaction is another proof point of the confidence that existing and new shareholders have in the current Active Power go to market strategy initiated just over a year ago," said Jim Clishem, President and CEO of Active Power. "Our strategies to natively expand into new global markets, expand our multi-channel sales distribution, increase our focus on service and deliver complete backup power solutions are demonstrating measurable results. In addition, these new funds allow us to strengthen our balance sheet and build on our success in providing customers with energy efficient, reliable and economically green backup power solutions across the globe. Customers recognize the need and importance of deploying environmentally friendly and energy efficient backup power products to their businesses. We’re beginning to see more and more mission-critical enterprises seek us out by name which truly reinforces our commitment to this expanding market. "
"The proceeds from this transaction along with the previously announced $5 million line of credit facility we intend to enter into in the third quarter significantly enhances our liquidity position and the financial flexibility to further execute our business strategies," said John Penver, CFO of Active Power.
Neither the offer nor sale of the shares of common stock sold to the investors has been registered under the Securities Act of 1933. Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Active Power has agreed to file a registration statement covering resale of the shares of common stock sold to the investors.