Proceeds of deal with Auctus slated for renewable energy business
By Jennifer Chiou
New York, March 24 - Exergetic Energy, Inc. announced that it has negotiated up to $10 million of drawdown equity financing via a three-year agreement with institutional investor Auctus Private Equity Fund, LLC.
The company may, at its discretion, deliver to Auctus up to $10 million worth of its common stock from time to time over a 36-month period.
The Detroit energy supply company said in a release that it recently completed the acquisition of Specialized Services, Inc. and now plans to conjoin the fuel delivery business with its core renewable energy business.
Chief executive officer Clarence McCollum noted: "The opportunity to take advantage of this unique funding opportunity allows us to complete the construction of our 1.5 megawatt solar farm facility, as well as completely overhaul and streamline the operations of the recently acquired fuel delivery business."
Proceeds are to fund the company's renewable energy business unit to help underwrite the construction of the solar farm facility in Desoto County, Fla., and complete prototype development of the proprietary solar inverter technology.
| Issuer: | Exergetic Energy, Inc.
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| Issue: | Drawdown equity financing
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| Amount: | $10 million (maximum)
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| Warrants: | No
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| Investor: | Auctus Private Equity Fund, LLC
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| Announcement date: | March 24
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| Stock symbol: | OTCQB: XNGR
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| Stock price: | $0.15 at close March 24
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| Market capitalization: | $94.6 million
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