Ballard Announces Close of U.S. Offering, Raises $8 Million

March 28, 2013 by Jeff Shepard

Ballard Power Systems announced the closing of an underwritten offering of 7,275,000 units for gross offering proceeds of approximately U.S. $8.0 million. Each unit in the Offering is comprised of one common share priced at U.S. $1.10 and one warrant to purchase one common share priced at U.S. $1.50. The common shares and warrants are immediately separable and will be issued separately, and no units will be issued or certificated.

Tony Guglielmin, Ballard CFO said, "We are pleased with this financing, with institutional investors knowledgeable in the clean technology space, which further fortifies the balance sheet to more strongly position Ballard for the execution of our growth plan and achievement of positive cash flow."

Last month, John Sheridan, President and CEO commented on the company’s current financial performance: “Q4 results reflected a marked turnaround from weak results earlier in the year – both top line and bottom line. This Q4 top line momentum and a solid yearend order book support our business outlook for 2013 revenue growth in excess of 30%. This top line growth, along with continued reductions in the cost base and a projected increase in gross margin, underpin our expectation for improvement in Adjusted EBITDA in excess of 50%.”

Also, the company’s recent financial projections are for revenue growth in excess of 30%, led by backup power and engineering services, which together represent more than half of the $36.8 million 2012 year-end order book (excluding Material Products). It is expected that this growth, along with higher gross margins and a lower cost base, will contribute to improvements in bottom line performance.