The microturbine maker said in a statement that it has definitive agreements with the investors to purchase 10.2 million shares of common stock, or pre-funded warrants in lieu of shares, at $0.50 per share or $0.4999 per pre-funded warrant.
Capstone also agreed to issue the investors unregistered warrants to purchase up to 7.650 million shares of its common stock.
The warrants have an exercise price of $0.6121 per share of common stock, will be exercisable on April 2, 2020, and will expire five years following the initial exercisability date.
Capstone intends to use the net proceeds from the offering for working capital and general corporate purposes.
H.C. Wainwright & Co is acting as the exclusive placement agent for the offering, which is expected to close on or about September 9.
Capstone, based in Van Nuys, California, offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
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