Energy Business

Beacon Power Prices Capital Raise (BCON)

Beacon Power Corporation (NASDAQ: BCON) is generally too small to cover because of its low share price but the company has announced the pricing of a capital raise.  The advanced energy storage systems company priced an underwritten public offering of 10,000 units at $1,000 per unit via Lazard for proceeds of $10 million or approximately $8.9 million net after fees, expenses and other items.

The gross proceeds from this public offering to Beacon are expected to be up to $15 million if you include the initial proceeds from the sale of the preferred stock and up to $5 million from the (possible) exercise of the warrants to purchase preferred stock included in the units.

Each unit consists of one share of Beacon’s newly designated Series B convertible preferred stock, with an initial stated value of $1,000 per share; one warrant to purchase an additional 0.5 of a share of preferred stock for an exercise price of $1,000 per share of preferred stock; and one warrant to purchase 4,458.27 shares of common stock at an exercise price of $0.25234 per share of common stock. The shares of preferred stock, the preferred stock warrants and the common stock warrants are immediately separable and will be issued separately. The preferred stock is convertible by the holders into common stock at an initial conversion price of $0.25234 per share, subject to adjustment.

The capital raised from the offering will be used for general corporate purposes and ongoing working capital requirements.

Beacon Power closed at only $0.26 yesterday and shares are now indicated down around $0.21.  The 52-week trading range is $0.18 to $0.54 and the average volume is only just over 1.5 million shares per day.

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JON C. OGG

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