Capstone Turbine Corp (Nasdaq:CPST), a leading producer of low-emission microturbine systems, announced an equity offering to raise approximately $42.5 million.
It will issue 40 million shares of common stock and warrants at $1.14 per unit, to purchase 20 million shares of common stock. The five-year warrants will be immediately exercisable at an exercise price of $1.30 per share. The financing is expected to close on or about January 24, 2007. The Company intends to use the proceeds for general corporate purposes.
Capstone also reported that it expects Q3 revenue to exceed analysts’ consensus. The company said it expects revenue for the quarter of approximately $5.7 million, exceeding analysts’ consensus estimate of $3.6 million. This estimate reflects an increase of approximately 97% over the revenue recorded for the previous quarter ended September 30, 2006 of $2.9 million.
“We are pleased to report that our third quarter revenue of approximately $5.7 million will substantially exceed analysts’ expectations and almost double the $2.9 million in revenue reported for the second quarter,” said Darren Jamison, President and CEO of Capstone Turbine Corporation. “The third-quarter revenue reflects significant increases in product sales in the North American, European and Russian markets,” added Jamison.
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