Capstone Turbine Corporation Announces Pricing of $14.3 Million Offering of Common Stock and Warrants
April 19 2016 - 09:45AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, announced today that it has entered
into an underwriting agreement to sell in a public offering
2,700,000 shares of the Company’s common stock (“Common Stock”) and
pre-funded Series B warrants to purchase up to 5,515,000 shares of
Common Stock, which will be offered in lieu of Common Stock to
those purchasers whose purchase of Common Stock in the offering
otherwise would result in the purchaser beneficially owning more
than 4.99% of the Company’s outstanding common stock following the
completion of the offering (the “Series B Warrants”). Also
included in the offering are Series A warrants to purchase
4,107,500 shares of Common Stock (the “Series A Warrants” and,
together with the Series B Warrants, the “Warrants”).
Every two shares of Common Stock will be sold
with one Series A Warrant to purchase one share of Common Stock at
a collective negotiated price of $3.50. Every two Series B Warrants
will be sold with one Series A Warrant to purchase one share of
Common Stock at a collective negotiated price of $3.48. The shares
of Common Stock or Series B Warrants, as applicable, and the Series
A Warrants are immediately separable and will be issued separately,
but will be purchased together.
Each Series A Warrant will have an initial
exercise price of $2.55 per share of Common Stock, will be
exercisable beginning six months after the issuance date and will
expire five years after the first day they are exercisable. Each
Series B Warrant will have a nominal exercise price of $0.01 per
share of Common Stock, will be exercisable upon issuance.
The gross proceeds to the Company from the
offering are expected to be approximately $14.3 million, and the
net proceeds to the Company from the offering, after deducting the
underwriting discount and commissions and other estimated offering
expenses, are expected to be approximately $13.1 million. The
Company intends to use the proceeds from the offering to fund
general working capital requirements and for other general
corporate purposes. The offering is expected to close on or about
April 22, 2016, subject to the satisfaction of customary closing
conditions.
Oppenheimer & Co. Inc. is acting as the sole
book-runner for the offering, and Rodman & Renshaw, a unit of
H.C. Wainwright & Co., LLC, is acting as a co-manager for the
offering.
Darren Jamison, President and Chief Executive
Officer of Capstone Turbine, said, “Strengthening our balance sheet
has been an area of focus as we continue to execute on our
three-pronged plan to reduce operating expenses, diversify and
increase revenue, and improve gross margins.”
The Common Stock and the Warrants are being
offered pursuant to the Company’s effective shelf registration
statement on Form S-3 (Registration No. 333-203431). The offering
will be made only by means of a prospectus supplement and
accompanying base prospectus. When available, copies of the final
prospectus supplement and accompanying base prospectus related to
the offering (the “Offering Documents”) may be obtained from the
Securities and Exchange Commission’s website at http://www.sec.gov.
When available, electronic copies of the Offering Documents may
also be obtained from Oppenheimer & Co. Inc., 85 Broad Street,
26th Floor, New York, NY 10004, Attn: Syndicate Prospectus
Department, by calling (212) 667-8563, or by email to
EquityProspectus@opco.com. Before you invest, you should read the
Offering Documents and other related documents incorporated by
reference therein.
This press release does not constitute an offer
to sell or the solicitation of offers to buy any securities of the
Company, and shall not constitute an offer, solicitation or sale of
any security in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Capstone Turbine Corporation
Capstone Turbine Corporation
(www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading
producer of low-emission microturbine systems and was the first to
market commercially viable microturbine energy products. Capstone
has shipped approximately 8,700 Capstone Microturbine systems to
customers worldwide. These award-winning systems have logged
millions of documented runtime operating hours. Capstone is a
member of the U.S. Environmental Protection Agency's Combined Heat
and Power Partnership, which is committed to improving the
efficiency of the nation's energy infrastructure and reducing
emissions of pollutants and greenhouse gases. A UL-Certified ISO
9001:2008 and ISO 14001:2004 certified company, Capstone is
headquartered in the Los Angeles area with sales and/or service
centers in the New York Metro Area, United Kingdom, Mexico City,
Shanghai and Singapore.
This press release contains “forward-looking
statements,” as that term is used in the federal securities laws,
about the offering, including our intended use of the proceeds
therefrom, reducing operating expenses, diversifying and increasing
revenue, and improving gross margin. Forward-looking statements may
be identified by words such as “expects,” “objective,” “intend,”
“targeted,” “plan” and similar phrases. These forward-looking
statements are subject to market and other conditions and numerous
other assumptions, risks and uncertainties, including those
described in Capstone's filings with the Securities and Exchange
Commission, that may cause the offering not to be completed or that
may otherwise cause Capstone's actual results to be materially
different from any future results expressed or implied in such
statements. Capstone cautions readers not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this release. Capstone undertakes no obligation, and
specifically disclaims any obligation, to release any revisions to
any forward-looking statements to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events.
“Capstone” and “Capstone MicroTurbine” are
registered trademarks of Capstone Turbine Corporation. All other
trademarks mentioned are the property of their respective
owners.
CONTACT:
Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
INVESTORS:
Dian Griesel Int’l
Cheryl Schneider
212-825-3210
Capstone Turbine (NASDAQ:CPST)
Historical Stock Chart
From Feb 2024 to Mar 2024
Capstone Turbine (NASDAQ:CPST)
Historical Stock Chart
From Mar 2023 to Mar 2024