Power Efficiency Corp. Announces $835,000 Private Financing with $0.40 Conversion Price

Power Efficiency Corp. announced it completed private placement of $835,000 worth of preferred stock and warrants.

In the offering, the company issued 20,875 Units, each unit consisting of one share of Series C Preferred Stock and a warrant to purchase up to 50 shares of the company’s common stock. Each Unit has a purchase price of $40. Each share of preferred stock is initially convertible into 100 shares of common stock, making the effective common stock purchase price $0.40. The warrants have a per share exercise price of $0.40.

The Series C Preferred Stock has an 8% dividend, payable annually in cash or stock, at the discretion of the Company’s board of directors. The Series C Preferred Stock has a mandatory conversion clause if the closing price of the company’s common stock averages $1 or greater over a 10-day period.