Preferreds sold at $10.00 each along with warrants for 565,372 shares
By Devika Patel
Knoxville, Tenn., Dec. 31 - Lime Energy Co. completed a $4 million private placement of 12.5% series B convertible preferred stock on Dec. 30, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 400,000 preferreds at $10.00 per preferred.
Each preferred will be initially convertible into common shares at a conversion price of $2.83. The company may force conversion or redeem the preferreds at prices ranging from par to 103.
The investors also received warrants for 565,372 common shares. The warrants are each exercisable at $2.83 for five years.
The strike price and conversion price are identical to the closing share price on Dec. 27.
Richard Kiphart was among the investors.
Proceeds will be used for general corporate purposes.
As a consequence of the placement, the conversion price of the company's 927,992 series A preferreds has been reduced to $3.58 per share from $3.78 per share.
Based in Huntersville, N.C., Lime Energy is an energy technology and engineering company.
| Issuer: | Lime Energy Co.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $4 million
|
| Shares: | 400,000
|
| Price: | $10.00
|
| Dividends: | 12.5%
|
| Conversion price: | $2.83
|
| Call: | At par to 103
|
| Warrants: | For 565,372 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.83
|
| Investors: | Richard Kiphart
|
| Settlement date: | Dec. 30
|
| Stock symbol: | Nasdaq: LIME
|
| Stock price: | $2.83 at close Dec. 27
|
| Market capitalization: | $10.06 million
|
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