Deal includes warrants; proceeds to ramp up manufacturing capabilities
By Devika Patel
Knoxville, Tenn., Feb. 4 - Vu1 Corp. said it has negotiated a private placement of stock. The deal will raise $2.2 million.
The company will sell about 4.9 million common shares at $0.45 apiece. The price per share is an 18.18% discount to the Feb. 3 closing share price of $0.55.
The investors will also receive five-year warrants for about 4.9 million shares, which are each exercisable at $0.60. The strike price represents a 9.09% premium to the Feb. 3 closing share price.
Rodman & Renshaw, LLC is the agent.
"These proceeds will allow Vu1 to scale up its manufacturing capabilities to meet the anticipated growing demand for our lighting products," chairman William B. Smith said in a press release.
"I am delighted that Vu1's disruptive lighting technology has been positively endorsed by the institutional investment community; with a further strengthened balance sheet, Vu1 can focus on continuing to deliver against its strategic plan, while reviewing its options for supporting its longer-term growth ambitions."
Seattle-based Vu1 is focused on developing and selling a line of mercury-free, energy-efficient light bulbs based on its proprietary light-emitting technology.
| Issuer: | Vu1 Corp.
|
| Issue: | Common shares
|
| Amount: | $2.2 million
|
| Shares: | 4.9 million (approximate)
|
| Price: | $0.45
|
| Warrants: | For about 4.9 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
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| Agent: | Rodman & Renshaw, LLC
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| Pricing date: | Feb. 4
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| Stock symbol: | OTCBB: VUOC
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| Stock price: | $0.55 at close Feb. 3
|
| Market capitalization: | $52.37 million
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