Electric City plans private placement for at least $15 million connected to merger

By Sheri Kasprzak

New York, May 22 - Electric City Corp. will conduct a PIPE for a minimum of $15 million as part of its merger with Parke Acquisition LLC, Parke Panda Corp. and Daniel Parke.

The terms of the offering have not yet been set.

Under the merger terms, Electric City will pay $3 million cash and $5 million in stock. Once the merger is complete, the entity will operate under the name Parke Panda Co., LLC.

When the merger is closed, the surviving entity will become responsible for a $400,000 credit line held by Parke.

Completion of the merger is contingent upon the completion of the PIPE, the conversion of all of Electric City's outstanding series E convertible preferreds, the payment of all of Electric City's convertible debt and the approval of Electric City's shareholders and board of directors.

Based in Elk Grove Village, Ill., Electric City develops technologies to reduce energy consumption.

On Monday, the company's stock gave up 28.57%, or 8 cents, to settle at $0.20 (Amex: ELC).

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