Enova Announces Additional Financing, Placing Of Shares
Enova Systems, Inc. announced that it has entered into a Securities Purchase Agreement and Registration Rights Agreement with several accredited investors. Pursuant to the Purchase Agreement, the Investors have agreed to purchase 1,273,700 shares of Enova’s common stock of no par value ("Common Shares") at $3.91 per Common Share (the "Placing Price"). It is anticipated that Enova will receive approximately $4,980,167 in gross proceeds from the sale of the Investor Shares. The net proceeds of from the sale of the Investor Shares are to be utilized to fund working capital and to strengthen the company’s balance sheet.
The Investor Shares will be sold by Enova in a private placement under Regulation D of the US Securities Act of 1933, as amended. The closing of the issue of Investor Shares is conditional upon, among other things, the listing of the Investor Shares for trading on the American Stock Exchange.
The Placing Price represents a discount of approximately 5.8% to the closing middle market price of the Enova unrestricted common shares on April 23, 2008 on the AIM Market of the London Stock Exchange. The Placing Shares represent approximately 6.6% of the company’s issued share capital immediately prior to the issue of the Investor Shares. The closing price of Enova’s Common Shares on the American Stock Exchange on April 23, 2008 was $3.86.
The implementation of the issue of Investor Shares does not require shareholder approval. It is expected that dealings in the Investor Shares on AIM will commence on 29 April 2008.