Ideal Power Announces $3.5 Million Private Placement
November 08 2019 - 8:30AM
Ideal Power Inc. (“Ideal Power”) (Nasdaq: IPWR), which is
pioneering the development and commercialization of highly
efficient and broadly patented B-TRAN™ bi-directional power
switches, today announced that it has entered into definitive
agreements with certain institutional and accredited investors,
including Dr. Lon E. Bell, Chief Executive Officer and Chairman of
the Board of Ideal Power, for a private placement of Ideal Power’s
common stock (or common stock equivalents) and warrants to purchase
common stock for aggregate gross proceeds of $3.5 million (the
“Offering”). The Offering is expected to close on or about November
13, 2019, subject to the satisfaction of customary closing
conditions.
In the Offering, Ideal Power has agreed to sell
an aggregate of approximately 1,413,400 shares of common stock (or
common stock equivalents) at a price of $2.4763 per share (or
common stock equivalent). Ideal Power will also issue to the
investors warrants to purchase up to an aggregate of approximately
1,766,750 shares of common stock at an exercise price of $2.32 per
share that are immediately exercisable and will expire five years
from the issuance date. Ideal Power intends to use the net proceeds
from this Offering for working capital and general corporate
purposes.
Craig-Hallum Capital Group is acting as
exclusive placement agent in connection with the Offering.
The shares of common stock and warrants (and
shares of common stock underlying the warrants) issued in the
Offering have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or state securities laws and may
not be offered or sold in the United States absent registration
with the Securities and Exchange Commission (the “SEC”) or an
applicable exemption from such registration requirements. Pursuant
to a registration rights agreement, Ideal Power has agreed to file
a registration statement with the SEC to register the resale of the
shares of common stock and the shares of common stock issuable upon
exercise of the warrants issued in the Offering within 30 days of
the closing of the Offering.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities in any state or
other jurisdiction in which such offer, solicitation or sale would
be unlawful.
About Ideal Power Inc.
Ideal Power (Nasdaq: IPWR) is pioneering the
development of its broadly patented bi-directional power switches,
creating highly efficient and ecofriendly energy control solutions
for industrial, alternative energy, military and automotive
applications. The company is focused on its patented
Bi-directional, Bi-polar Junction Transistor (B-TRAN™)
semiconductor technology. B-TRAN™ is a unique double-sided
bi-directional AC switch able to deliver substantial performance
improvements over today's conventional power semiconductors. Ideal
Power believes B-TRAN modules will reduce conduction and switching
losses, complexity of thermal management and operating cost in
medium voltage AC power switching and control circuitry. For more
information, visit www.IdealPower.com.
Safe Harbor Statement
All statements in this release that are not
based on historical fact are “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
and the provisions of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended. While Ideal
Power’s management has based any forward-looking statements
included in this release on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of our
control that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include, but are not limited to, the expected gross proceeds from
the Offering, the intended use of net proceeds from the Offering,
the risks and uncertainties associated with market conditions, the
satisfaction of customary closing conditions related to the
Offering, the success of our B-TRAN™ technology, whether the
patents for our technology provide adequate protection and whether
we can be successful in maintaining, enforcing and defending our
patents, our inability to predict with precision or certainty the
pace of development and commercialization of our B-TRAN™
technology, whether we can continue as a going concern and
uncertainties set forth in our quarterly, annual and other reports
filed with the SEC. Furthermore, we operate in a highly competitive
and rapidly changing environment where new and unanticipated risks
may arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise forward-looking statements.
Ideal Power Investor Relations
Contact:
MZ North AmericaChris
Tyson949-491-8235IPWR@mzgroup.uswww.mzgroup.us
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