Monday, December 22, 2008

Beacon Power raises $4.4M in sale of stock warrants

By Efrain Viscarolasaga

Tyngsborough-based power storage technology developer Beacon Power Corp. has received a commitment for the sale of $4.4 million worth of company warrants through a previously filed shelf registration statement.

While investors in the deal were not named, officials said the new funding will be used to finance ongoing operations, including flywheel manufacturing, and the continued development of the company’s frequency regulation facility in New England. The transaction is expected to close on December 24.

Beacon Power (NASDAQ: BCON) raised $7.2 million in a similar deal in October.

Through the offering, the company will sell approximately 8.9 million units for 50 cents per unit, with each unit consisting of one share of common stock, valued at 1 cent per share, and one warrant to purchase one share of the company’s common stock at an exercise price of 74 cents per share. The net proceeds to Beacon Power are expected to be approximately $4.1 million after deducting placement agency fees and estimated expenses, according to a company statement.

Beacon Power makes grid-level energy storage systems based on flywheel technology. The company has already built five megawatts of capacity at its Tyngsborough facility as part of a grid-based alternative energy storage pilot program launched by ISO New England Inc. The company intends to build four more of the units at its facility, according to past statements.

A spinoff of Boston-based SatCon Technology Corp.’s Energy Systems division, Beacon Power was founded in 1997. The company went public in 2000 and last year reported $1.4 million in revenue on a $13 million loss. In the third quarter of 2008, the company reported $4,000 in revenue, with a net loss of $5.6 million.