Company issues 671,785 shares to Lincoln Park as commitment fee
By Marisa Wong
Madison, Wis., Feb. 24 - HPEV, Inc. will sell up to $10 million of its common stock to Lincoln Park Capital Fund, LLC over a 36-month period under a purchase agreement dated Feb. 19, according to an 8-K filing with the Securities and Exchange Commission.
HPEV may from time to time sell up to 75,000 shares of common stock in regular purchases, provided that each regular purchase does not exceed $500,000.
There are no upper limits to the purchase price, which will be based on prevailing market prices.
The company may sell additional amounts as accelerated purchases if the closing share price exceeds $0.60 per share but may not sell any shares if the closing share price drops below $0.25.
Drexel Hamilton LLC acted as the placement agent for the transaction.
In consideration for entering into the agreement, the company issued 671,785 shares of common stock to Lincoln Park as a commitment fee.
The agreement may be terminated by HPEV at any time without any fees.
"This access to capital from [Lincoln Park] increases our flexibility to build out our team and continue to move aggressively into the markets that we are currently serving. Additionally, the transaction allows us to enter new markets at an accelerated pace as we proliferate our technology and patents," Theodore Banzhaf, HPEV's president, said in a press release.
HPEV is an intellectual property and product development company based in Tampa, Fla.
| Issuer: | HPEV, Inc.
|
| Issue: | Common stock purchase agreement
|
| Amount: | Up to $10 million
|
| Shares: | Up to 75,000
|
| Term: | 36 months
|
| Price: | Based on prevailing market prices
|
| Warrants: | No
|
| Agent: | Drexel Hamilton LLC
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| Investor: | Lincoln Park Capital Fund, LLC
|
| Agreement date: | Feb. 19
|
| Stock symbol: | OTCBQ: WARM
|
| Stock price: | $0.78 at close Feb. 24
|
| Market capitalization: | $34.3 million
|
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