Beacon Power Corporation (NASDAQ: BCON) has received an investment commitment to fund ongoing operations and for further development. This will help to assist in the completion of manufacturing of flywheel systems for commercial deployment of 5 Megawatts of frequency regulation service by the end of 2008.
Beacon sold 8.7 million units at $0.91 per unit, with each unit beingcomprised of 1 share of common stock and 1 warrant with a $1.20exercise price. The warrants can be immediately separated from theshares and exercise terms will allow conversion after 6-months and thewarrants will expire in 5-years.
The gross proceeds of the offering are $7.9 million, and Beacon willreceive roughly $7.2 million net after deducting selling fees andexpenses for the offering.
Merriman Curhan Ford was the lead placement agent and Kaufman Brotherswas a co-placement agent. The investment transaction is expected toclose on October 15, 2008.
Beacon’s plan is to commercialize its patented flywheel energy storagetechnology to perform frequency regulation services on the grid.Beacon’s Smart Energy Matrix is designed to be a non-polluting,megawatt-level, utility-grade flywheel-based solution that will providesustainable frequency regulation services.
It seems some small speculative alternative energy companies are stillable to raise cash even under the current market conditions beinghighly unfavorable for speculative and safe companies alike.
Based on yesterday’s close, its market cap is over $94 million. As of June 30, it had roughly $16.68 million in cash and its total liabilities were listed as $5.155 million. Shares are down 6% at $0.99 pre-market after closing down $0.08 at $1.06 Thursday. Its 52-week trading range is $0.84 to $2.49.
Jon C. Ogg
October 10, 2008