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Banking, finance, and taxes

Beacon Dims on New Financing (BCON)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published

Beacon Power Corporation (NASDAQ:BCON) is developing a patented flywheel energy storage product, and the going is getting tough. The company today announced an $18 million investment from a private equity firm and the share price is heading toward a new 52-week low.

Under the terms of the deal, private equity firm Seaside 88 LP, will purchase $1 million worth of Beacon stock on the 20th day of each of the next 18 months. The deal is structured in three segments of six months each. Beacon is only committed to the first six-month segment. The company has applied for a loan from the US Department of Energy, and if and when the loan comes through, the deal with Seaside could be canceled. The maximum number of shares Seaside may acquire cannot exceed 19.9% of Beacon’s total outstanding.

Shareholders don’t like the promise of dilution, and have taken the shares down about 13% this morning. Beacon shares have traded in a 52-week range of $0.35-$2.18.

Paul Ausick
February 20, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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