Smith Electric Vehicles U.S. Corporation Announces Completion of Equity Private Placement of $58 Million

Smith Electric Vehicles U.S. Corp. announced the issuance and sale of $39 million of Series B Convertible Preferred Stock and the conversion of Bridge Notes and the exercise of related Warrants into $19 million of Series B Convertible Preferred Stock.

As previously announced, the company acquired Smith Electric Vehicles UK effective January 1, 2011. The purchase consideration was largely deferred with the balance due as a series of monthly cash payments. Per the purchase agreement, $5 million of proceeds from this equity raise will be used as a prepayment of the monthly installments. This prepayment will result in a payment holiday of approximately seven months.

The remaining net proceeds will be used for general corporate purposes and working capital needs as Smith continues to ramp up its supply chain and manufacturing capabilities.