Amerigon Hammers Holders With Capital Raise (ARGN)

Amerigon Incorporated (NASDAQ: ARGN) is hammering its shareholders with a secondary offering.  The public secondary offering is for 4,600,000 shares of common stock and the price is coming out at $15.25 per share.  The company is raising $70 million in gross proceeds and more than $65 million in net proceeds.

As far as how $15.25 compares to the market, shares closed at $15.95 on Monday and the 52-week trading range is $11.64 to $18.18.

Roth Capital Partners is listed as the sole book-running manager; Craig-Hallum Capital Group is listed as the co-manager in the offering. The underwriters have also been granted a 30-day option to purchase up to 690,000 additional common shares to cover over-allotments.

The Company intends to use the net proceeds from this offering “to make future redemption installment payments on, and pay dividends on, its outstanding Series C 8% convertible preferred stock and, to the extent not used for such purposes, to prepay its outstanding debt obligations.”

Amerigon’s market value before the effects of this offering was listed as $375 million.  Shares are so far indicated down only 2% at $15.95.

JON C. OGG