Preferreds sold at $10.00 apiece with warrants for 1,851,851 shares
By Devika Patel
Knoxville, Tenn., Sept. 23 - Lime Energy Co. completed a $9.28 million private placement of 12.5% series A convertible preferred stock on Sept. 23, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 927,992 preferreds at $10.00 per preferred.
Each preferred will be convertible into common shares at a conversion price of $0.54. The company may force conversion or redeem the preferreds at prices ranging from par to 103.
The investors also received warrants for 1,851,851 common shares. The warrants are each exercisable at $0.54 for five years. The strike price and conversion price reflect a 6.9% discount to the $0.58 closing share price on Sept. 20.
Richard Kiphart and Christopher Capps were among the investors.
Based in Huntersville, N.C., Lime Energy is an energy technology and engineering company.
| Issuer: | Lime Energy Co.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $9,279,920
|
| Shares: | 927,992
|
| Price: | $10.00
|
| Dividends: | 12.5%
|
| Conversion price: | $0.54
|
| Call: | At par to 103
|
| Warrants: | For 1,851,851 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.54
|
| Investors: | Richard Kiphart and Christopher Capps
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Nasdaq: LIME
|
| Stock price: | $0.58 at close Sept. 20
|
| Market capitalization: | $13.83 million
|
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