Arrangement calls for collaboration on developing, expanding trademark
By Susanna Moon
Chicago, Jan. 10 - Ecotality Inc. entered into a securities purchase agreement with ABB Technology Ventures Ltd. for a $10 million private placement of stock.
The purchase price will be equal to 110% of the 10-day volume weighted average price of the shares over the 10-day period ending on the trading date prior to the closing date.
The purchase price is subject to a collar between $3.62 and $3.84.
The investor will also receive a five-year warrant to purchase a number of common shares equal to 40% of the total number of shares purchased at the closing.
The warrant exercise price will initially be equal to 135% of the purchase price.
The deal is expected to close three business days after signing of the purchase agreement.
Under the agreement, ABB Inc. and its affiliates will collaborate with the company and its affiliates to further the development, expansion and acceptance of market-leading battery charging solutions that incorporate, use or rely on the company's technology or that provide the networking functionality the company and its affiliates have designed and operate, associated with its Blink trademark.
Ecotality is a renewable energy company in Scottsdale, Ariz.
| Issuer: | Ecotality Inc.
|
| Issue: | Common stock
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| Amount: | $10 million
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| Price: | $3.62 to $3.84
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| Warrants: | 40% of placement shares
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| Warrant strike price: | 135% of share price
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| Investor: | ABB Technology Ventures Ltd.
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 13
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| Stock symbol: | Nasdaq: ECTY
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| Stock price: | $3.29 at close Jan. 7
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| Market capitalization: | $40.96 million
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