UPDATE - Ideal Power Enters into Early Warrant Exercise Transaction
August 03 2020 - 9:33AM
On July 31, 2020, Ideal Power Inc. (Nasdaq: IPWR) (the “Company” or
“Ideal Power”) entered into an early warrant exercise transaction
with certain of the Company’s Series A warrant holders through a
letter agreement between the Company and such Series A warrant
holders, pursuant to which the Company will raise approximately
$2.7 million in gross proceeds. A portion of the proceeds
from the transaction will be utilized to fund commercialization and
development of the Company’s patented Bi-directional, Bi-polar
Junction Transistor (B-TRAN™) semiconductor technology. As an
incentive for the Series A warrant holders to exercise their Series
A warrants early, the holders will be issued new Series C warrants
to purchase up to an aggregate of 705,688 shares of the Company’s
common stock, at an exercise price of $8.90 per share, through a
private placement.
Craig-Hallum Capital Group is acting as the exclusive placement
agent for this transaction. The Series C warrants (and shares of
common stock underlying the Series C warrants) to be issued in this
transaction 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. The issuance of the Series C warrants is exempt from
the registration requirements of the Securities Act pursuant to the
exemption for transactions by an issuer not involving any public
offering under Section 4(a)(2) of the Securities Act and Rule 506
of Regulation D promulgated under the Securities Act. Ideal Power
has agreed to file a registration statement with the SEC covering
the resale of the shares of common stock underlying the Replacement
Warrants.
This press release shall not constitute an offer to sell, nor
the solicitation of an offer to buy, the securities described
herein, nor shall there be any offer, solicitation or sale of the
securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such state.
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.
Forward-Looking Statements
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 of 1933 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 impact of COVID-19 on our business, financial
condition and results of operations, the success of our B-TRAN™
technology, including the success of our government-funded
technology demonstration project, whether the patents for our
technology provide adequate protection and whether we can be
successful in maintaining, enforcing and defending our patents and
our inability to predict with precision or certainty the pace of
development and commercialization of our B-TRAN™ technology, our
ability to secure additional financing on commercially reasonable
terms or at all, especially in light of the market volatility and
uncertainty as a result of the COVID-19 outbreak, 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:
LHA Investor RelationsCarolyn Capaccio, CFA / Keith Fetter
T: 212-838-3777 IdealPowerIR@lhai.com
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