Beacon Power Corporation (NASDAQ: BCON) has received a commitment for $4.4 million of new investment. The capital will be used to fund ongoing operations, including flywheel manufacturing, and the continued development of Beacon’s frequency regulation facility in New England, the company said.
The transaction is expected to close on December 24, 2008.
Beacon’s Smart Energy Matrix, which is now in production, is a
non-polluting, megawatt-level, utility-grade flywheel-based solution to
provide sustainable frequency regulation services. Beacon is a publicly
traded company with its research, development and manufacturing
facility in the U.S.
Beacon will sell approximately 8.9 million units for $0.50 per unit. Each unit consists of one share of the Company’s common stock, par value $0.01 per share, and one warrant to purchase one share of the Company’s common stock at an exercise price of $0.74 per share. The net proceeds to Beacon Power are expected to be approximately $4.1 million after deducting placement agency fees and estimated expenses.
The warrants will be immediately separable from the units, and will be exercisable beginning six months and one day after the date of their issuance, and will expire five years after they become exercisable.
All of the units are being offered by Beacon Power under an effective shelf registration statement previously filed with the Securities and Exchange Commission. Merriman Curhan Ford (NASDAQ: MERR) acted as placement agent in connection with this transaction.
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