ThermoEnergy Corporation announced the completion of a private equity placement raising approximately $7,000,000. The company announced that it has issued 5,590,337 units at a price of $1.20 per unit, with each unit consisting of one share of Convertible Preferred Stock, convertible into Common Stock on a one-for-one basis, and a Warrant entitling the holder to purchase 45 cents share of Common Stock at an exercise price of $1.50 per share.
"ThermoEnergy's corporate dynamic will be significantly affected as a result of this equity investment, enabling management to expedite its immediate and long-term growth strategy," said Dennis C. Cossey, president and CEO of ThermoEnergy Corporation. "In addition, we were exceptionally pleased with the level of interest and participation by institutional investors who were responsible for over 80% of the total amount invested.”
The company recently signed its first commercial contract, for a 500,000 gallon-per-day Ammonia Recovery Process (ARP) facility for New York City, N.Y. designed to assist in the clean up of Long Island Sound by limiting the amount of nitrogen (in the form of ammonia) that gets discharged into the Upper East River every day. The company has since quoted a second ARP system for a new privatized wastewater treatment facility currently in the design and construction phase in Orange County, Calif.
"We will be adding several new engineers to our soon-to-be-opened New York City office," said Cossey, "as well as expanding our Little Rock, Ark.-based management team."
Source: ThermoEnergy Corporation