Business
Ideal Power Completes Early Warrant Exercise Transaction
AUSTIN, Texas, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Ideal Power Inc. (Nasdaq: IPWR) (the “Company” or “Ideal Power”) has completed an early warrant exercise
About this update from Ideal Power Inc.
[{"type":"text","content":"AUSTIN, Texas, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Ideal Power Inc. (Nasdaq: IPWR) (the “Company” or “Ideal Power”) has completed an early warrant exercise transaction with certain of the Company’s Series A warrant holders through a letter of agreement between the Company and such Series A warrant holders. The transaction raised approximately $2.7 million in gross proceeds. Ideal Power intends to use the proceeds from the transaction to fund commercialization and development of the Company’s patented Bi-directional, Bi-polar Junction Transistor (B-TRAN™) semiconductor technology and general corporate and working capital purposes.\n \"This transaction strengthens our cash position, enables an orderly exercise of warrants for holders, and provides additional resources for us to execute our Phase Two commercial plan while avoiding the need to access the capital markets in the current volatile environment,\" said Dan Brdar, President and Chief Executive Officer of Ideal Power. \"Having built a solid strategic foundation, we are working diligently toward commercialization of our innovative B-TRAN™ bi-directional power switch technology. We thank our Series A warrant holders for their continued support.” Management will discuss its strategic progress further when it reports second quarter 2020 results on August 13, 2020. As an incentive for the Series A warrant holders to exercise their Series A warrants early, the Series A warrant holders were issued new Series C warrants to purchase up to an aggregate of 705,688 shares of the Company’s common stock, at an exercise price of $8.90 per share, through a private placement. Craig-Hallum Capital Group acted as the exclusive placement agent for this transaction. The Series C warrants (and shares of common stock underlying the Series C warrants) issued in this transaction have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. Ideal Power has agreed to file a registration statement with the SEC covering the resale of the shares of common stock underlying the Series C warrants. This press release does not constitute an offer to sell, or the sol...