GreenMan Technologies announced the completion of a private placement for $8.2 million of 10 percent Convertible Preferred Stock to several institutional investors.
The preferred stock has a 10 percent annual dividend, payable quarterly at the Company’s option in cash or in common stock, and is convertible to common stock at a conversion price of $0.40 per share.
The investors also received five-year warrants to purchase a number of shares of common stock equal to the number of conversion shares, exercisable at $0.50 per share.
The investors have the right, exercisable at any time before March 31, 2013, to purchase up to an additional $2.7 million of preferred stock and warrants under the same terms.
GreenMan also said that Dr. Allen Kahn and Thomas Galvin resigned as Directors, and the following three members were appointed to the Board:
Neil Braverman is the founder of Associated Private Equity. He previously founded and was co-Chairman of Safeskin Corporation, the leading manufacturer of latex/synthetic gloves to the healthcare and electronic markets, which was sold to Kimberly Clark Corporation in 1999. Prior to Safeskin Corporation, Mr. Braverman founded Paramount Oil Corporation, a manufacturer of motor and industrial oils. During his career, Mr. Braverman founded and managed numerous real estate investments and manufacturing firms. He began his entrepreneur career founding and building the largest wig company in the U.S., which sold to U.S. Industries. He received a B.S. degree from Georgia Institute of Technology.
Avi Faliks, Ph.D. is a Managing Director of Spring Mountain Capital. He previously was a private investor, acquiring distressed consumer companies that were restructured, rebuilt, and sold to strategic investors. Prior to his private equity investment activities, Dr. Faliks was the co-founder and Managing Director of Apex Capital Management, a hedge fund based in New York and Hong Kong specializing in Greater China investments. He was previously CEO of AccuImage Diagnostic Corp. Dr. Faliks began his investment career at Bear Stearns’ Strategic Structures and Transactions Group. He received a Ph.D. in Chemical Physics from Princeton University and graduated with a B.A. with honors in Applied Mathematics from Harvard College.
Jamie Weston is a Managing Director of Spring Mountain Capital. He was previously a Partner at The Wicks Group of Companies, a private equity firm with close to $1 billion under management, focused on selected segments of the information, education, and media industries. During his 15 years at Wicks, Mr. Weston was an integral part of its investment and management activities and served on the board of directors of many of its portfolio companies. While at Wicks, he directly structured and negotiated more than 20 acquisitions and divestitures and worked on more than 40 additional closed transactions. Prior to Wicks, Mr. Weston worked at IBJ Whitehall Bank & Trust Company and National Westminster Bancorp, where he completed leveraged financings. He received an M.B.A. from Fordham University and a B.A. in Economics, cum laude, from Drew University.
Maury Needham, GreenMan’s Chairman stated, “ We are proud of the caliber of investors as well as new Board members that we have attracted with this financing, endorsing both our Company and its strategy. Our three new Board members add considerable and varied business acumen and we look forward to their contribution. Furthermore, we are thankful to our debenture holders who converted to common stock in conjunction with this deal, thereby further strengthening our balance sheet. ”
Lyle Jensen, GreenMan’s President and CEO stated, “ This transaction puts GreenMan in a unique position to drive considerable growth given the increasing adoption of natural gas as an energy source and the attractive economic return of our patented dual-fuel solution. With an enhanced capital structure and bolstered Board of Directors, we now look forward to turning our attention to execution and fulfilling the growing demand for our product .”
[mappress] LNG World News Staff, May 4, 2012