Beacon Power Corporation (NASDAQ: BCON) announced it prepared a stock sale to raise $7.9 million. By Oct. 15, Beacon Power will sell 8.7 million units at 91¢ per unit. Each unit includes one share, 1¢ par value, and one warrant to purchase one other share at an exercise price of $1.20 per share. The warrants will be exercisable beginning six months and one day after the date of their issuance, and will expire five years after they become exercisable.
Net proceeds for the company are expected to be about $7.2 million after agency fees and expenses. For this transaction, Merriman Curhan Ford acted as lead placement agent, and Kaufman Brothers, L.P. acted as co-placement agent.
The capital will be used to fund ongoing operations, Beacon Power says, including its main goal: the manufacturing completion of flywheel systems for commercial deployment of 5 Megawatts of frequency regulation service by the end of 2008.
Massachusetts-based Beacon Power’s primary business strategy is to commercialize its patented non-polluting flywheel energy storage technology to perform frequency regulation services on the grid.
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