Deal also includes option to sell 10 million shares at 10% discount
By Susanna Moon
Chicago, Jan. 10 - FuelCell Energy, Inc. said it entered into a definitive agreement with an institutional investor to sell units in a registered direct offering for $19 million. Lazard Capital Markets LLC is the placement agent.
FuelCell will sell 10,160,428 units at $1.87 per unit, with each unit consisting of one common share and one warrant.
The warrants are exercisable at $2.29 per share for 21 months beginning six months and one day after closing. The warrant strike price represents a 10.1% premium to the company's closing price on Jan. 7.
FuelCell also may require the investor to purchase up to 10 million additional shares about nine months after closing. The sale price for the additional shares will be based on a fixed 10% discount to a volume-weighted average price at the time FuelCell Energy exercises the option. FuelCell Energy cannot require the investor to purchase more than $20 million of additional shares.
Proceeds will be used for product development, project financing, expansion of manufacturing capacity and general corporate purposes.
Settlement is expected to occur on Jan. 13.
FuelCell is based in Danbury, Conn., and produces carbonate fuel cell technology for stationary power generation.
| Issuer: | FuelCell Energy Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $19 million
|
| Units: | 10,160,428
|
| Price: | $1.87
|
| Warrants: | One per unit
|
| Warrant strike price: | $2.29
|
| Warrant expiration: | For 21 months beginning six months and one day after closing
|
| Agent: | Lazard Capital Markets LLC
|
| Pricing date: | Jan. 10
|
| Settlement date: | Jan. 13
|
| Stock symbol: | Nasdaq: FCEL
|
| Stock price: | $2.08 at close Jan. 7
|
| Market capitalization: | $225.89 million
|
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