Solar Power, Inc. (SPI) (OTCBB:SOPW), a vertically integrated manufacturer of photovoltaic (PV) modules and marketer, designer and installer of PV solar electric systems for commercial, public and residential customers in the United States, announced today that it has entered into definitive agreements with institutional and accredited investors with respect to a private placement with gross proceeds of approximately $10,500,000, before payment of placement agent commissions and offering expenses. The Company intends to use the net proceeds from this financing for general corporate purposes, including working capital. Stephen Kircher, Chief Executive Officer of Solar Power stated, “This additional equity will significantly help us to achieve our 2008 objectives.”
Needham & Company, LLC served as lead placement agent and Roth Capital Partners, LLC served as co-placement placement agent for the transaction.
The private placement of approximately 4,000,000 shares of common stock includes warrant coverage of 30%. The warrants are exercisable beginning six months after the closing, and have a term of 5 years and an exercise price of $3.90 per share.
The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and were sold in a private placement transaction in reliance on Section 4(2) of the Securities Act. Accordingly, the securities acquired in the private placement may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
In connection with this financing, Solar Power has agreed to prepare and file a registration statement covering the resale of the common stock purchased by the investors in the private placement, as well as the common stock issuable upon exercise of the warrants. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities discussed herein, nor may there be any sale of the securities in any jurisdiction in which such offering would be unlawful.
For additional information, please refer to Solar Power’s current report on Form 8-K to be filed with the Securities and Exchange Commission with respect to this transaction.
About Solar Power, Inc.:
Founded in 2005, Solar Power, Inc. is a vertically integrated solar energy solution provider offering the North American residential, commercial and public sector building markets a complete solution through a single brand. With a state of the art manufacturing facility in Shenzhen, China, Solar Power, Inc. provides turnkey design-build solutions through its Sacramento, California headquarters and a growing retail distribution network.
Safe Harbor Statement:
This press release contains forward-looking statements, including statements regarding the intended use of net proceeds from the financing. Actual results may differ materially from those projected due to a number of risks and uncertainties, including, but not limited to, the satisfaction of customary closing conditions to the financing, general business conditions, and the matters specified in the Company’s filings with the Securities and Exchange Commission. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this press release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company’s filings with the SEC, including the company’s most recent periodic report.