Beacon Power Corporation (NASDAQ: BCON) has received commitments for $10.6 million of new investment.
The capital will be used to fund ongoing operations, including the expected completion of Beacon’s Smart Energy 25 flywheel development and the design of the first 20-megawatt frequency regulation power plant. The transaction is expected to close on February 15, 2007.
Investors agreed to purchase approximately 11.8 million units for $0.90 per unit, each of which consists of one share of the Company’s common stock, par value $0.01 per share, and a warrant to purchase 0.5 shares of the Company’s common stock at an exercise price of $1.33 per share. The net proceeds to the Company are expected to be approximately $9.8 million after deducting placement agency fees and estimated offering expenses.
The warrants are immediately separable from the units, and will be exercisable beginning six months and one day after the date of their issuance, and will expire on the fifth anniversary of the date of their issuance.
All of the units are being offered under a shelf registration statement previously filed with the Securities and Exchange Commission.
About Beacon Power
Beacon’s primary business strategy is to commercialize its patented flywheel energy storage technology to perform frequency regulation services on the grid. Beacon’s Smart Energy Matrix, now being demonstrated on a scale-power level in two states, is a prototype for a non-polluting, megawatt-level, utility-grade flywheel-based solution that would provide sustainable frequency regulation services.
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