SatCon Technology's Affiliate, Beacon Power, Closes Stock PlacementJune 05, 2000 by Jeff Shepard
SatCon Technology Corp. (Cambridge, MA) announced that its Beacon Power Corp. affiliate has closed a $28.5 million private placement of Beacon Power's Class F preferred stock with GE Capital; Mechanical Tech., Inc.; DQE Enterprises, Inc.; the Beacon Group Energy Investment Fund II, L.P.; Penske Corporation; Micro-Generation Technology Fund; and Perseus Capital, L.L.C. GE Capital, Mechanical Tech. and Perseus Capital each invested $6 million. The Beacon Group invested $4.5 million and DQE Enterprises, Penske and Micro-Generation Fund each invested $2 million. Beacon Power plans to utilize the proceeds from the private placement to complete the commercialization of its flywheel energy storage system and to begin establishing production capability. "We are excited about this significant investment," said David Eisenhaure, SatCon's president and CEO. "We believe that the support of Beacon Power's investors validates our vision that flywheel energy storage systems can be an environmentally friendly alternative to batteries. We are also pleased to note that DQE Enterprises, Micro-Generation Tech. Fund and Perseus Capital were already strategic investors in Beacon Power...As Beacon Power's largest shareholder, we believe that this investment has strengthened Beacon Power and we view this investment as increasing Beacon Power's overall valuation."