Deal includes warrants; proceeds to ramp up manufacturing capabilities
By Devika Patel
Knoxville, Tenn., Feb. 11 - Vu1 Corp. said it completed a private placement of stock on Feb. 8, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced for $2.2 million on Feb. 4 and raised $2.21 million.
The company sold 4,911,112 common shares at $0.45 apiece. The price per share is an 18.18% discount to the Feb. 3 closing share price of $0.55.
The investors will also receive five-year warrants for an additional 4,911,112 shares, which are each exercisable at $0.60. The strike price represents a 9.09% premium to the Feb. 3 closing share price.
Rodman & Renshaw, LLC is the agent.
"These proceeds will allow Vu1 to scale up its manufacturing capabilities to meet the anticipated growing demand for our lighting products," chairman William B. Smith said in a press release at pricing. "I am delighted that Vu1's disruptive lighting technology has been positively endorsed by the institutional investment community; with a further strengthened balance sheet, Vu1 can focus on continuing to deliver against its strategic plan, while reviewing its options for supporting its longer-term growth ambitions."
New York-based Vu1 is focused on developing and selling a line of mercury-free, energy-efficient light bulbs based on its proprietary light-emitting technology.
| Issuer: | Vu1 Corp.
|
| Issue: | Common shares
|
| Amount: | $2.21 million
|
| Shares: | 4,911,112
|
| Price: | $0.45
|
| Warrants: | For 4,911,112 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | Feb. 4
|
| Settlement date: | Feb. 11
|
| Stock symbol: | OTCBB: VUOC
|
| Stock price: | $0.55 at close Feb. 3
|
| Market capitalization: | $58.65 million
|
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