Two Small Alternative Energy Capital Raises, More To Come (ACPW, CPST)

We have two small capital raises seen this morning in two alternative energy players.  These are also classified as cult stocks due to their small size and trading history.  Active Power, Inc. (NASDAQ: ACPW) is raising almost $10 million and Capstone Turbine Corporation (NASDAQ: CPST) is raising almost $37 million in an offering.  Normally these might be too small to have much care about.  The difference here is that there are probably a couple dozen small alternative energy and green energy companies which have seen shares plummet from the 2008-craze highs and many of them need cash either for operations or for required listing standards.

Active Power, Inc. (NASDAQ: ACPW) has priced a public secondary offering of 13,229,500 shares of common stock at $0.75 per share to raise about $9,922,125.  This one closed yesterday at $0.93 and shares are trading at $0.80 in the pre-market reaction.  Thomas Weisel Partners LLC is acting as sole book-running manager of the offering.  The market cap based on yesterday’s close was $61.8 million and the 52-week trading range is $0.46 to $1.50.

Capstone Turbine Corporation (NASDAQ: CPST) has entered into an underwriting agreement with Lazard Capital Markets as the sole book-running manager in a public offering of 38,095,239 shares of common stock.  The deal priced at $1.05 per share versus a $1.24 close on Thursday.  The net proceeds are expected to be approximately $36.8 million.  The prior market cap based on yesterday’s close was $243 million.  Before the open we have shares trading down 12% at $1.09 as this is a larger offering than what was originally expected.

If these deals are well received and do not overly punish the stocks, you can almost be certain that a dozen other small alternative energy companies will be out raising cash.

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JON C. OGG
FEBRUARY 19, 2010