Akeena Solar Raises $12.6 Million to Meet Growing Demand for Solar Power Systems
Los Gatos, CA, May 31, 2007
Source: Akeena Solar, Inc. press release
http://www.akeena.net/cm/Investor%20Relations/Home.html
Akeena Solar, Inc. (OTCBB:AKNS), a leading designer and installer of solar power systems, announced it entered into definitive purchase agreements with investors to raise $12.6 million of gross proceeds in a private investment in public equity (PIPE) offering. Akeena will issue 4,572,725 shares of common stock in the offering, and three-year warrants to purchase an aggregate of up to 1,295,995 shares of common stock with an exercise price of $3.95 per share. The exercise price and number of shares issuable upon exercise of the warrants are subject to the anti-dilution provisions of the warrants. The company plans to close on or about June 1, 2007 subject to customary closing conditions.
The company intends to use the net proceeds from this financing for general corporate purposes including growth initiatives, capital expenditures, research and development, and working capital. “This financing will be used to fuel our continued growth, particularly as we expand our footprint,” said Barry Cinnamon, CEO. “In addition, these funds will provide us with the working capital needed to commercialize our proprietary solar module technology later this year.”
Empire Financial Group, Inc., a San Francisco based broker-dealer, acted as placement agent in connection with a portion of the funds raised. The Westly Group of Menlo Park, CA is an investor in the PIPE. The company has agreed to file a registration statement with the United States Securities and Exchange Commission covering the shares sold and underlying the warrants sold in the offering no later than thirty days after the closing, and to use its best efforts to have the registration statement declared effective as soon as practicable thereafter. Following this transaction, Akeena will have approximately 23 million shares of common stock and approximately 1.8 million warrants outstanding.
About Akeena Solar, Inc.
Founded in 2001, Akeena Solar’s (OTCBB:AKNS) philosophy is simple: We believe producing clean electricity directly from the sun is the right thing to do for our environment and economy. Akeena Solar has grown to become one of the largest national integrators of residential and small commercial solar power systems in the United States, serving customers directly in California, New Jersey, New York, Connecticut and Pennsylvania. For more information, visit Akeena Solar’s website at www.akeena.net.