Company sells convertible preferreds with warrants through offering
By Devika Patel
Knoxville, Tenn., Dec. 29 – Car Charging Group, Inc. said it settled a $6 million private placement of convertible preferred securities.
The preferreds are convertible into common shares at $0.70 per share, a 94.44% premium to the Dec. 26 closing share price of $0.36.
The investors also received warrants, which are each exercisable at $1.00. The strike price is a 177.78% premium to the Dec. 26 closing share price.
Proceeds will be used to strengthen Car Charging's balance sheet, build on the past year's progress and provide growth capital for expanding the company's network.
“This capital raise occurs as CarCharging prepares for further expansion in 2015,” chief executive officer Michael D. Farkas said in a press release. “As we pursue both top line growth and a path to profitability, we intend to maintain a strict focus on managing cash while investing in technology and business development initiatives to address the increasing need for quick, convenient, and cost-effective EV charging services.
“We believe that this transaction will help ensure our ability to capitalize on numerous opportunities to grow and further improve the company's operations, including unlocking the value of our significant equipment inventory,” Farkas said.
Based in Santa Monica, Calif., Car Charging Group provides and installs car charging stations at public locations.
| Issuer: | Car Charging Group, Inc.
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| Issue: | Convertible preferred securities
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| Amount: | $6 million
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| Conversion price: | $0.70
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| Warrants: | Yes
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| Warrant strike price: | $1.00
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| Settlement date: | Dec. 29
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| Stock symbol: | OTCBB: CCGI
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| Stock price: | $0.36 at close Dec. 26
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| Market capitalization: | $35.74 million
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