Alternate Energy Corp. (AEC, Las Vegas, NV), a producer of low-cost hydrogen gas, announced that it has received $2,750,000 via a private placement of the company's common stock with institutional investors. The proceeds are expected to be used to fund interim working capital requirements, marketing and early-stage business development programs; complete certification of the company's hydrogen production system; as well as develop final engineering specifications for the company's alpha product for distribution to customer accounts.
The financing includes the issuance of 5.5 million shares of restricted shares at $0.50 per share, and 3.547 million warrants exercisable over a three-year period to purchase the company's common stock at $0.85 per share. The company shall have the option of calling any unexercised warrants once the registration statement is effective and the company's common stock price exceeds $2 per share for 30 trading days.
