Capstone Turbine Corporation (NASDAQ:CPST) has announced that it has signed an agreement with one new and one current accredited investor. Under the agreement, the company would sell 6.3 million shares of its common stock, through a registered offering. As per the details of the agreement, the company would issue 3.6 million shares and pre-funded series B warrants, to purchase additional 2.7 million shares of its common stock. The warrants have been issued to prevent the investors from owning more than 9.99% of the CPST’s outstanding common stock.
The company stated that it would sell each common share at a price of $1.20, with each series B warrant carrying an exercise price of $1.20, of which $1.19 would be pre-funded. Capstone Turbine hired Oppenheimer & Co as its lead placement agent, with Roth Capital Partners serving as the co-placement agent. Darren Jamison, the CEO of CPST, pointed out that the company was pursuing several larger multi-megawatt projects. He also thanked the investors for their continued support and patience.
It is anticipated that the company would obtain $7.5 million in gross proceeds, which it plans to use for funding of its general working capital requirements and for general corporate purposes. The offering is set to close on October 21, 2016, dependent upon customary closing conditions. In addition to improving its financial health, CPST has also been making significant progress with its business.
Capstone Turbine recently announced that it has shipped a C800 signature series microturbine to its Russian distributor. The company noted that the turbine would be used to power a railway station, with commissioning due in December 2016. DV Energy LLC, is serving as the CHP distributor for CPST, in the Far-Eastern Federal District and caters to each one of Capstone’s market segments, excluding oil & gas. The company stated that it had chosen DV Energy, after reviewing its connections in the region. It should be noted here that the Far-Eastern region is considered to be a difficult region to develop.
Capstone Turbine Corporation (NASDAQ:CPST) closed at a share price of $1.12, after gaining 1.81% in its share value, during the October 19 trading session.