Ener-Core announced a $4 Million private placement with reasonable terms on Friday. The stock is moving up nicely on the news.
Ener-core, Inc. (OTCBB: ENCR)
$ 0.265 ▲ 0.035 (15.22%)
Volume: 209,532
News on Friday:
Ener-Core Announces Entry Into Definitive Agreements For A $4 Million Private Placement Financing
ENER-CORE, Inc. (ENCR), designer and manufacturer of proprietary Gradual Oxidation technology and equipment that generates clean electric power from low quality and waste gases, is pleased to announce that it has entered into definitive agreements with certain accredited investors and institutional investors in connection with a private placement financing. Upon closing of the transaction, Ener-Core will receive gross proceeds of $4 million in exchange for the issuance of approximately 26.7 million shares of Ener-Core restricted common stock. Each restricted share of common stock will be sold at a per share purchase price of $0.15. Participants in the financing include existing shareholders, institutional investors, Ener-Core’s CEO, CFO, and three members of its Board of Directors including its Chairman. This private placement is expected to close on Tuesday, September 23, 2014 and is subject to customary closing conditions.
“The proceeds from this private placement will strengthen our balance sheet and provide us with working capital to achieve revenue-generating milestones,” stated Alain Castro, Chairman and CEO. “We remain focused on the deployment of our Gradual Oxidizer into multiple industries, as well as the scale up of this technology to larger power capacities. Additionally, we appreciate the support from our existing shareholders, as well as the strategic advice that we have received from the Special Equities Group at Chardan Capital, and are excited to work with them to continue to build awareness and shareholder value.”
Chardan Capital Markets LLC acted as lead placement agent for the offering.
Their Mission: Covert “Air Pollution” into Energy
Ener-Core: Converting Air Pollution to Clean Energy, Profitably. Ener-Core designs, develops, and manufactures products and technologies that aim to expand power generation into previously uneconomical markets. We anticipate our Gradual Oxidation technology will provide customers with cost competitive power generation having lower emissions and greater fuel flexibility than conventional power plants. The Ener-Core Powerstation FP250 and Ener-Core Powerstation KG2-3G/GO combine our Gradual Oxidizer technology with gas turbines ranging from 250kW to 2MW. Because our Gradual Oxidizer replaces the turbine’s standard combustor, our systems can operate on a gaseous fuel that is much lower in quality, and with fewer emissions than in a conventional turbine. We believe that our customers can greatly reduce the cost of compliance with air quality regulations by avoiding the chemicals, catalysts, and complex permitting required by competing systems. Our products are specifically engineered for fuel flexibility and modularity, so that low-quality fuels can be used as an energy resource instead of wasted through venting and/or flaring.