Medis Technologies Secures $5 million Investment For Series B Preferred Stock
Medis Technologies Ltd. announced that it has entered into a definitive agreement with a technology and energy focused fund, which has offices in New York and California, under which the company has secured a $5 million investment. Proceeds from the Investment will be used to fund operations and working capital needs of the company. Medis believes that the proceeds coupled with internally generated sources of cash and government funding will be sufficient for the company to fund operations in the near term.
Based on the terms and certain market conditions and thresholds of the Investment, the company may drawdown funds from the Investor through the issuance of Series B Preferred Stock and five-year warrants exercisable for shares of the company’s Common Stock having a value equal to 135% of the drawdown amount. The Preferred Stock will accrue dividends at an annual rate of 10%, which will be paid in additional Preferred Stock upon redemption or repurchase. The Preferred Stock is redeemable after the fifth anniversary of the drawdown date and is subject to repurchase by the company under certain circumstances.
Jose Mejia, CEO and Chairman of Medis commented, "We are pleased that we have secured the financing necessary to continue to execute our organizational, operational and financial restructuring."
Mejia added, "This is an endorsement of our technology. We are the only company to have ever manufactured fuel cells in commercial quantities, and we welcome our long-term financial partners who realize the vision and potential of Medis. We will continue to execute our business strategy – focusing on further cost rationalization, reducing cash burn and exploring government funding for fuel cells."
