Banking, finance, and taxes
Beacon Dims on New Financing (BCON)
Published:
Last Updated:
Beacon Power Corporation (NASDAQ:BCON) is developing a patented flywheel energy storage product, and the going is getting tough. The company today announced an $18 million investment from a private equity firm and the share price is heading toward a new 52-week low.
Under the terms of the deal, private equity firm Seaside 88 LP, will purchase $1 million worth of Beacon stock on the 20th day of each of the next 18 months. The deal is structured in three segments of six months each. Beacon is only committed to the first six-month segment. The company has applied for a loan from the US Department of Energy, and if and when the loan comes through, the deal with Seaside could be canceled. The maximum number of shares Seaside may acquire cannot exceed 19.9% of Beacon’s total outstanding.
Shareholders don’t like the promise of dilution, and have taken the shares down about 13% this morning. Beacon shares have traded in a 52-week range of $0.35-$2.18.
Paul Ausick
February 20, 2009
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
