Trulite Receives $1.2 Million In Equity Funding And Converts $3.6 Million Of Debt To Equity
Trulite, Inc. announced that it has received a $1.2 million investment from Standard Renewable Energy Group LLC ("SREG"). In this transaction, SREG received 2.4 million shares of Trulite common stock.
The investment will be used to continue manufacturing the KH4 integrated fuel cell, to continue the commercialization process of the KH4 and for new product development. SREG also converted into Trulite common stock a total of $1,889,055 in principal and interest in loans that had been made to the company between August 2006 and August 2007. With these transactions, SREG now owns 54.3% of Trulite.
"Standard Renewable Energy Group is very pleased with the progress Trulite has made in its commercialization process. With the development of the new KH4 integrated fuel cell and the introduction of the related hybrid products, we believe Trulite is well positioned to meet the needs of the markets for portable hydrogen fuel cells. For this reason, we are committing these additional resources to Trulite," commented John White, CEO of Standard Renewable Energy Group LLC.
In addition, Contango Venture Capital Corp., a wholly-owned subsidiary of Contango Oil & Gas Company, converted into Trulite common stock a total of $1,356,540 in principal and interest in loans that had been made to the company between August 2006 and August 2007. Two other investors that had provided $500,000 in convertible loans to the company in June 2007 also agreed to convert their loans, including $31,441 of interest, as part of these transactions.
Over the past two months, management and several members of the Board of Directors have also participated in funding the company’s growth by participating in the bridge loan that closed in November 2007 and by exercising vested stock options to acquire common stock.
"We appreciate the confidence in Trulite’s business plan that is demonstrated by our investors making further commitments to Trulite. Trulite will continue to provide beta units of the KH4 that have been requested by customers and will also be able to move more quickly toward commercial manufacturing. In addition, we believe the capital structure that results from these transactions will be more conducive to attracting additional investment in the company," commented Jonathan Godshall, CEO of Trulite, Inc.
