Ideal Power Inc. has entered into a definitive securities purchase agreement with various accredited investors, including all of Ideal Power's executive officers and directors, to raise gross proceeds of approximately $15 million in a private placement of common stock and warrants to purchase common stock.
In addition, Ideal Power has agreed to sell to a group of affiliated investors whose purchase of common stock would have resulted in such investors beneficially owning more than 9.99% of the Company's outstanding common stock immediately following the offering, shares of the Company's newly designated Series A Convertible Preferred Stock in lieu of common stock.
Each share of such preferred stock is convertible, subject to certain limitations, into one share of common stock. Each share of common stock or preferred stock, together with a warrant to purchase one share of common stock, is being sold at a per share price of $2.535. The warrants will have an exercise price of $2.41 per share, are non-exercisable for the first six months and will expire three years from the date of issuance.
The transaction is anticipated to close on or about March 3, 2017, subject to customary closing conditions. Ideal Power anticipates using the net proceeds from the transaction primarily for working capital and general corporate purposes.
Ideal Power has developed a novel, patented power conversion technology called Power Packet Switching Architectureâ„¢ (PPSAâ„¢). PPSA improves the size, cost, efficiency, flexibility and reliability of electronic power converters. PPSA can scale across several large and growing markets, including solar PV, variable frequency drives, battery energy storage, mobile power and microgrids, and electric vehicle fast charging. The Company is also developing and has patented a bi-directional, bi-polar junction transistor (B-TRANâ„¢) which has the potential to dramatically increase bi-directional power switching efficiency and power density.
