Three-year deal with Lincoln Park negotiated without a fixed discount
By Devika Patel
Knoxville, Tenn., April 25 - Enova Systems, Inc. arranged a $10 million stock purchase agreement with Lincoln Park Capital Fund, LLC on April 23 and April 24, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It negotiated $6.6 million of the deal on April 23 and the remaining $3.4 million on April 24.
The company will sell common shares to Lincoln Park over three years. The purchase price of the shares for both deals will be based on the prevailing market prices at the time of sales, without any fixed discount.
As consideration for the $6.6 million agreement, the investor will receive up to 556,440 shares pro rata. It will receive an additional 567,681 shares as consideration for the $3.4 million agreement and has already received 281,030 of these shares.
Based in Torrance, Calif., Enova makes digital power-control systems for automobile engines.
| Issuer: | Enova Systems, Inc.
|
| Issue: | Stock purchase agreement
|
| Amount: | $10 million
|
| Tenor: | Three years
|
| Warrants: | No
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Pricing date: | April 23 (for $6.6 million), April 24 (for $3.4 million)
|
| Stock symbol: | Amex: ENA
|
| Stock price: | $0.24 at close April 20
|
| Market capitalization: | $9.41 million
|
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