Deal sells 19.6 million units with half-share warrants at $0.25 each
By Devika Patel
Knoxville, Tenn., March 5 - Energy Focus, Inc. said it will conduct a $4.9 million private offering of units with a group of investors.
The company will sell 19.6 million units of one common share and a half-share warrant at $0.25 per unit. The whole warrants are exercisable at $0.54 for three years. The strike price is a 25.58% premium to the March 3 closing share price of $0.43.
"Our common stock price has risen since finalizing the negotiations with these investors," chief executive officer Joe Kaveski said in a press release. "We were obligated to honor the terms of the agreement on pricing despite the stock's recent rise. However, it is gratifying that our new investors have expressed their intent to be long-term shareholders of the company.
"This capital infusion was very timely, as it will provide a source of cash to retire debt and other obligations due in March. Additionally, this investment, along with our new credit facility, will provide the necessary working capital needed to fund our growth during 2012 for IntelliTube sales to the U.S. Navy and other LED products to our commercial and government customers," Kaveski said.
Based in Solon, Ohio, Energy Focus designs, develops, manufactures and markets fiber optic lighting systems.
| Issuer: | Energy Focus, Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $4.9 million
|
| Units: | 19.6 million
|
| Price: | $0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.54
|
| Pricing date: | March 5
|
| Stock symbol: | Nasdaq: EFOI
|
| Stock price: | $0.43 at close March 3
|
| Market capitalization: | $7.21 million
|
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