Capstone Files To Raise Capital (CPST)

Capstone Turbine Corporation (NASDAQ: CPST) is filing to raise capital.  The market cap before the filing was $361 million and the filing is for up to $100 million in a mixed securities offering. The company’s $100 million can be in any combination of the following securities: Common Stock; Common Stock Warrants; Preferred Stock; Debt Securities; and Rights. 

As far as the USE OF PROCEEDS: Unless we indicate otherwise in an accompanying prospectus supplement, we intend to use the net proceeds from the sale of the securities offered by this prospectus for general corporate purposes, which may include, but are not limited to, working capital, capital expenditures, acquisitions and repurchases or redemptions of securities.  When particular series of securities are offered, a prospectus supplement related to that offering will set forth our intended use of the net proceeds received from the sale of those securities.  We will have significant discretion in the use of any net proceeds.  The net proceeds may be invested temporarily in short-term marketable securities or applied to repay indebtedness outstanding at that time until they are used for their stated purpose.

Shares were up over 1% before the filing and now the stock is down 2% at $1.33 on active volume against a 52-week trading range of $0.85 to $2.14.