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10/13/2008 06:16 AM
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Flywheel Company To Sell Shares
SustainableBusiness.com News
Flywheel developer Beacon Power Corporation (NASDAQ: BCON), has received a commitment for $7.9 million of new investment. The capital will be used to fund ongoing operations, including the completion of manufacturing of flywheel systems for commercial deployment of five megawatts (MW) of frequency regulation service by the end of 2008. The transaction is expected to close on October 15, 2008.
The Company will sell 8.7 million units for $0.91 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 $1.20 per share. The net proceeds to the Company are expected to be approximately $7.2 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 lead placement agent, and Kaufman Brothers, L.P. acted as co-placement agent in connection with this transaction.
About Beacon Power
Beacon Power Corporation designs, develops and has begun commercial deployment of its frequency regulation service product. The Company's primary business strategy is to commercialize its patented flywheel energy storage technology to perform frequency regulation services on the grid. Beacon's Smart Energy Matrix, now entering production, is designed to be a non-polluting, megawatt-level, utility-grade flywheel-based solution that will provide sustainable frequency regulation services. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S.
Website: http://www.beaconpower.com
