Capstone Enters Into Warrant Exercise Agreements Generating Net Proceeds of $8.3M With Various Holders to Further Bolster Balance Sheet and Simplify Capital Structure
CHATSWORTH, Calif., Nov. 22, 2011 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that it entered into warrant exercise agreements with various holders to further bolster its balance sheet and simplify the capital structure.
The transaction was consummated with two holders of warrants issued by the Company in September 2009, four holders of warrants issued by the Company in September 2008 and six holders of warrants issued by the Company in January 2007.
The net proceeds to the Company in connection with the exercise of the Warrants is approximately $8.3 million. As a result of these transactions, there are now no 2009 warrants outstanding, 4.3 million 2008 warrants, and 3.2 million 2007 warrants.
"This transaction in conjunction with the recent $5 million increase in our Wells Fargo credit line provides Capstone additional cash to strengthen our balance sheet and cleans up a substantial amount of the overhang related to the outstanding warrants. In addition, reducing the outstanding warrants lowers the potential impact of the warrant liability on the Company's financial results every quarter," said Darren Jamison, President and Chief Executive Officer.
Please refer to the Company's Form 8-K filing today with the SEC for further details.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading producer of low-emission microturbine systems and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped over 6,000 Capstone MicroTurbine(R) systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, Mexico City, Nottingham, Shanghai and Singapore.
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"Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
Capstone Turbine Corporation Investor and Investment Media Inquiries: 818-407-3628
Released November 22, 2011
