Capstone Kills Overhang of Warrants, For a Price (CPST)

Capstone Turbine Corporation (NASDAQ: CPST) filed with the SEC this morning with news that it has now removed a certain overhang of warrants on its stock.  Unfortunately, these were above-market strike/exercise prices…. Capstone entered into Warrant Exercise Agreements with 2 holders of warrants issued on September 17, 2009 to purchase 5,780,347 shares AND 4 holders of warrants issued on September 17, 2008 to purchase 2,444,808 shares AND 6 holders of warrants issued on January 24, 2007 to purchase 5,243,642 shares of common Stock. 

As noted: “Pursuant to the Warrant Exercise Agreements, the 2009 Holders agreed to exercise the 2009 Warrants at the existing exercise price of $1.34 in exchange for a fee of an aggregate amount of approximately $5,433,526, the 2008 Holders agreed to exercise certain 2008 Warrants at the existing exercise price of $1.60 in exchange for a fee of an aggregate amount of approximately $2,200,330 and the 2007 Holders agreed to exercise certain 2007 Warrants at the existing exercise price of $1.17 in exchange for a fee of an aggregate amount of approximately $1,835,278. The net proceeds to the Company in connection with the exercise of the 2009 Warrants, the 2008 Warrants and the 2007 Warrants is approximately $8,323,287.  As a result of these transactions, there are now no 2009 Warrants outstanding, 4,293,808 2008 Warrants and 3,191,932 2007 Warrants.”

$1.34… $1.60… $1.17… all above the $1.09 close on Monday.