Purchase Agreements with Lincoln Park Capital (0732C)
April 25 2012 - 11:09AM
UK Regulatory
TIDMENV TIDMENVS
RNS Number : 0732C
Enova Systems, Inc.
25 April 2012
ENOVA SYSTEMS, INC
("Enova" or "the Company")
Enova Systems Signs Purchase Agreements with Lincoln Park
Capital, LLC
Total Funding of up to $10 Million
Enova Systems, Inc. (NYSE AMEX: ENA and AIM: ENV and ENVS), a
leading developer of proprietary hybrid electric and all-electric
drive systems and drive system components for the emerging green
commercial vehicle market, announced today that it has signed a
purchase agreement on April 24, 2012 for the sale, from time to
time, of $3.4 million of its common stock, including an initial
investment of $250,000, with Lincoln Park Capital Fund, LLC (LPC),
a Chicago-based institutional investor. The securities LPC agreed
to purchase under this purchase agreement were offered through a
prospectus supplement pursuant to the Company's effective shelf
registration statement and base prospectus contained therein.
In addition, Enova previously entered into a separate purchase
agreement with LPC that, subject to certain conditions including
the effectiveness of a registration statement to be filed with the
US Securities and Exchange Commission covering the resale of the
shares that may be issued to LPC, commits LPC to purchase up to
$6.6 million of Enova's common stock over a 36-month period. LPC
has no right to require any sales by Enova, but is obligated to
make purchases as Enova directs in its sole discretion in
accordance with the purchase agreement, which may be terminated by
Enova at any time, without cost or penalty.
"We are pleased to conclude on these funding agreements with LPC
which provide us flexibility to pursue our business goals," said
Michael Staran, CEO of Enova. "We plan to use any proceeds from
this agreement to fund current operations and implement value added
initiatives".
"As Enova looks forward to its future cash needs, we consider
these LPC agreements to provide a backstop to enable Enova to
continue pursuit of its business strategy" stated John Micek, CFO
of Enova.
Under both agreements, there are no upper limits to the price
LPC may pay to purchase Enova common stock. Any time that Enova
elects to sell shares to LPC, the pricing of that sale will be
fixed pursuant to a formula that is based upon the market price of
Enova common stock immediately preceding the notice to LPC without
any fixed discount. Accordingly, Enova will know on that date of
notice the price per share that LPC will be required to pay.
A more detailed description of the agreements is set forth in
the Company's Current Report on Form 8-K recently filed with the
SEC on April 24, 2012 which the Company encourages be reviewed
carefully.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities in this offering,
nor will there be any sale of these securities in any jurisdiction
in which such offer solicitation or sale are unlawful prior to
registration or qualification under securities laws of any such
jurisdiction.
About Lincoln Park Capital ("LPC")
LPC is an institutional investor headquartered in Chicago,
Illinois. LPC's experienced professionals manage a portfolio of
investments in public and private entities. These investments are
in a wide range of companies and industries emphasizing life
sciences, specialty financing, energy and technology. LPC's
investments range from multiyear financial commitments to fund
growth to special situation financings to long-term strategic
capital offering companies certainty, flexibility and consistency.
For more information, visit www.LincolnParkCapital.com.
About Enova Systems
Enova Systems (http://www.enovasystems.com) is a leading
supplier of efficient, environmentally friendly digital power
components and systems products. The Company's core competencies
are focused on the development and commercialization of power
management and conversion systems for mobile applications. Enova
applies unique 'enabling technologies' in the areas of alternative
energy propulsion systems for light and heavy-duty vehicles as well
as power conditioning and management systems for distributed
generation systems. The Company develops, designs and produces
non-invasive drive systems and related components for electric,
hybrid-electric, and fuel cell powered vehicles in both the "new"
and "retrofit" vehicle sales market. For further information,
contact Enova Systems directly, or visit its Web site at
http://www.enovasystems.com.
ENOVA SYSTEMS, Inc.
1560 West 190th Street
Torrance, CA 90501
Tel: 310-527-2800
Contact: John Micek, CFO/Investor Relations
Additional Information:
This news release contains forward-looking statements relating
to Enova Systems and its products that are intended to be covered
by the safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking
terminology such as "believe," "expect," "may," "will, " "should,"
"could," "project," "plan," "seek," "intend," or "anticipate" or
the negative thereof or comparable terminology and statements about
industry trends and Enova's future performance, operations and
products. These forward-looking statements are subject to and
qualified by certain risks and uncertainties. These and other risks
and uncertainties are detailed from time to time in Enova Systems'
periodic filings with the Securities and Exchange Commission,
including but not limited to Enova's annual report on Form 10-K for
the year ended December 31, 2011.
For further information please contact:
Enova Systems, Inc.
Mike Staran, President & Chief Executive Officer
John Micek, Chief Financial Officer
Tel: + 1 310 527 2800
Daniel Stewart & Company plc
(Nominated Adviser & Broker)
Paul Shackleton/Jamie Barklem
Tel: + 44 (0) 207 776 6550
This information is provided by RNS
The company news service from the London Stock Exchange
END
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