ZBB Energy Corporation Announces $3.0 Million Bridge Financing
ZBB Energy Corporation announced it entered into a Securities Purchase Agreement with certain investors to sell a total of 3,000 shares of Series B Convertible Preferred Stock (the "Preferred Stock") in a private placement transaction, which will result in gross proceeds of $3.0 million. At the same time, ZBB announced financial results for the fiscal year ended June 30, 2013 as compared to the year ended June 30, 2012 included an increase in product sales by 224% to $7,305,516 from $2,252,412. Product sales gross profit increased to $1,030,239 compared to $184,704 in the prior year.
Total revenues, including engineering and development revenue, increased 61% to $7,723,699 from $4,805,568. Net loss decreased to $11,878,915 compared to $13,710,226. The decrease in net loss is due primarily to the increase in commercial gross profit, reduction in engineering and development costs and lower interest expense. And loss per share declined to ($0.15) from ($0.37).
"We have made significant progress towards entering strategic relationships with large multi-national partners, and this financing provides a bridge to fund our operations as we finalize these agreements," said Eric C. Apfelbach, President and CEO. "These strategic partnerships are expected to provide significant up-front cash licensing fees and accelerate the commercialization of our technologies worldwide."
Recent investors include members of ZBB's board of directors who will purchase 500 shares of Preferred Stock. Shares of Preferred Stock will accrue dividends at an annual rate of 10.0% and will be convertible at a fixed conversion price equal to $0.19, which was the closing price of the common stock of the company on September 25, 2013 (the "Conversion Price"), into a total of 15,789,474 shares of common stock.
In connection with the purchase of the Preferred Stock, each investor will receive three-year warrants to purchase a number of shares of common stock equal to the amount of investment in the Preferred Stock divided by the Conversion Price, at a fixed exercise price equal to $0.19. In addition, ZBB issued a total of 407,895 warrants to certain placement agents in connection with the transaction. The closing of the sale of the Preferred Stock and warrants is expected to take place on or about September 27, 2013, subject to customary closing conditions. The net proceeds from the transactions will be used to meet ZBB's working capital needs and for general corporate purposes.
