EPG issues private placement of $15m in stock
Environmental Power Corporation announced Tuesday that it would privately place convertible preferred stocks and warrants to purchase $15 million in common stock, issuing 281,241 units.
Each unit in the Portsmouth-based developer of renewable energy production facilities will consist of one share of Series A Preferred, which is initially convertible to 10 shares of common stock, and warrants to purchase five shares of common stock at $5.522 per share.
Purchase price for each unit will be $53.335, according to a recent statement released by EPG officials.
Proceeds from the private placement will be used to finance construction of renewable energy facilities under development by EPG subsidiaries Microgy Inc. and Microgy Holdings LLC.
The announcement came in tandem with an announcement that EPG would join forces with Minneapolis-based Cargill Inc., the international provider of food, agricultural and risk management products to identify future farm waste-to-energy projects for Microgy.
The agreement between the two companies includes provisions for granting Cargill warrants on the purchase of stock in EPG.
“We believe that the expertise of Cargill, coupled with the value created by Microgy’s renewable energy and carbon credit production facilities will propel our roll-out of RNG production capacity in major agricultural and food industry markets throughout North America,” said Rich Kessel, president and CEO of EPG. – TRACIE STONE/NEW HAMPSHIRE BUSINESS REVIEW