Titan Energy Worldwide, Inc. closed a $6.5 million private placement offering of Series D Convertible Preferred Stock on January 31, 2008. With the completion of this private placement combined with the nearly $1.8 million bridge financing secured between April and July 2007, the company has now raised approximately $8.3 million. On October 1, 2007, the bridge financing converted to approximately 3,859,844 shares of common stock. With the proceeds of this offering, Titan increased its working capital and retired essentially all of its approximately $3.8 million in debt except for a working line of credit with its financial institution.
John Tastad, Chief Executive Officer of Titan Energy Worldwide, Inc. stated, "With this financing Titan now has the capital and resources to aggressively move forward with its growth initiatives. Specifically, we plan to continue building our core businesses, close strategic acquisitions and expand our growth into key alternative energy markets."
"Despite uncertainties in the stock market and the economy, we succeeded in raising equity with investors placing their confidence in Titan's long-term strategy, business plan and potential for increased value. We are excited about fulfilling our vision to become 'Your Next Generation Power Company,'" added Tastad.
Subscribers in the Offering received one unit of Preferred Series D for $10,000. Each Preferred Series D share of stock carries the right to convert into 10,000 shares of Common Stock in the Company. Subscribers also received one Type A and one Type B warrant each of which entitles the holder to purchase 3,333 shares of common stock at an exercise price of $1.20 and $1.40, respectively. As the offering is being made pursuant to Regulation D under the Securities Act of 1933, the securities will only be offered to "accredited investors" as defined in Regulation D and will not be registered under the Securities Act of 1933 and may not be offered or sold absent registration or an applicable exemption from registration.
With the completion of this raise and the bridge financing, the company has 15,398,205 shares of common stock issued and outstanding, 657 shares of Preferred Series D which convert to 6,570,000 shares of common stock, and 7,828,442 warrants which if exercised, convert into 7,828,442 shares of common stock.
In connection with this private placement, the company filed a Form 8-K with the Securities and Exchange Commission which contains details about the terms of the transaction.
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