Moelis assists in funding growth; warrants for stock included in deal
By Devika Patel
Knoxville, Tenn., Sept. 27 - Lighting Science Group Corp. raised $49 million in the final tranche of a $168 million private placement of its series H convertible preferred stock on Sept. 25, according to an 8-K filed Thursday with the Securities and Exchange Commission. Moelis & Co. was the agent for the deal, which priced on May 29.
The company sold 168,000 preferreds at $1,000 apiece, with 49,000 preferreds sold in the final tranche.
Investors also received warrants for 163.2653 common shares for each preferred purchased. The warrants are each exercisable at $0.72 for three years. The strike price reflects a 52% discount to the closing share price of $1.50 on May 25.
Zouk Capital LLP, Riverwood Capital, Pegasus Capital Advisors, LP, Portman Ltd., Cleantech Europe II (A) LP and Cleantech Europe II (B) LP were among the investors.
Proceeds will be used for the company's growth and to enhance its leadership position in the LED lighting market, with a strong focus on developing the company's technology and product pipeline as well as improving operational efficiencies.
The proceeds will also be used to expand the company's relationship with key supply chain partners, optimize its working capital management and increase its pace of new product introductions. Lighting Science said it also plans to invest in its sales and marketing efforts.
The Satellite Beach, Fla.-based company makes lighting devices and systems that use light-emitting diodes as the light source.
| Issuer: | Lighting Science Group Corp.
|
| Issue: | Series H convertible preferred stock
|
| Amount: | $168 million
|
| Shares: | 168,000
|
| Price: | $1,000
|
| Warrants: | For 163.2653 shares for each preferred purchased
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.72
|
| Agent: | Moelis & Co.
|
| Investors: | Zouk Capital LLP, Riverwood Capital, Pegasus Capital Advisors, LP, Portman Ltd., Cleantech Europe II (A) LP and Cleantech Europe II (B) LP
|
| Pricing date: | May 29
|
| Settlement date: | Sept. 25 (for $49 million)
|
| Stock symbol: | OTCBB: LSCG
|
| Stock price: | $1.50 at close May 25
|
| Market capitalization: | $184.09 million
|
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