Ideal Power Completes Early Warrant Exercise Transaction
August 05 2020 - 04:05PM
Ideal Power Inc. (Nasdaq: IPWR) (the “Company” or “Ideal Power”)
has completed an early warrant exercise transaction with certain of
the Company’s Series A warrant holders through a letter of
agreement between the Company and such Series A warrant holders.
The transaction raised approximately $2.7 million in gross
proceeds. Ideal Power intends to use the proceeds from the
transaction to fund commercialization and development of the
Company’s patented Bi-directional, Bi-polar Junction Transistor
(B-TRAN™) semiconductor technology and general corporate and
working capital purposes.
"This transaction strengthens our cash position, enables an
orderly exercise of warrants for holders, and provides additional
resources for us to execute our Phase Two commercial plan while
avoiding the need to access the capital markets in the current
volatile environment," said Dan Brdar, President and Chief
Executive Officer of Ideal Power. "Having built a solid strategic
foundation, we are working diligently toward commercialization of
our innovative B-TRAN™ bi-directional power switch technology. We
thank our Series A warrant holders for their continued
support.”
Management will discuss its strategic progress further when it
reports second quarter 2020 results on August 13, 2020.
As an incentive for the Series A warrant holders to exercise
their Series A warrants early, the Series A warrant holders were
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 acted as the exclusive placement
agent for this transaction.
The Series C warrants (and shares of common stock underlying the
Series C warrants) 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. Ideal Power has
agreed to file a registration statement with the SEC covering the
resale of the shares of common stock underlying the Series C
warrants. This press release does not constitute an offer to sell,
or the solicitation of an offer to buy, securities of the Company
in the United States.
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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