By LLuvia Mares
New York, Aug. 27 - Distributed Energy Systems Corp. announced Monday it completed a $15 million convertible note financing with an investment fund managed by Perseus, LLC.
The company received $15 million in cash at the Aug. 24 deal settlement and repaid all principal and accrued interest under the $12.5 million note issued by the company to Perseus in June.
In exchange for the new investment, the company issued Perseus a 12.5% senior secured convertible promissory note, which matures Nov. 30, 2008. The new note is convertible at $0.57 per share.
A five-year warrant to purchase 34,989,629 shares of the company's stock at exercise prices ranging from $0.80 to $3.00 per share was also included.
In connection with the first $12.5 million financing deal in June, the company issued a five-year warrant to purchase 7,954,536 shares of stock at $0.80 per share. This warrant remains outstanding.
Distributed Systems also changed its board, appointing two Perseus representatives to serve as directors in place of two senior company executives.
The Wallingford, Conn.-based company specializes in creating, delivering products and solutions for the decentralized energy marketplace.
Issuer: Distributed Energy Systems Corp.
Issue: Senior convertible promissory notes
Amount: $15 million
Maturity: Nov. 30, 2008
Coupon: 12.5%
| Conversion price: | $0.57
|
| Warrants: | For 34,989,629 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | Ranging from $0.80 to $3.00
|
| Settlement date: | Aug. 24
|
| Announcement date: | Aug. 27
|
| Stock symbol: | Nasdaq: DESC
|
| Stock price: | $0.74 at close Aug. 24
|
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