CAMPBELL, Calif., Feb. 22, 2011 (GLOBE NEWSWIRE) -- Akeena Solar, Inc. d/b/a Westinghouse Solar (Nasdaq:WEST), a leading designer and manufacturer of solar power systems, announces two transactions to strengthen their balance sheet.
The company closed a transaction on February 17, 2011, to raise $3.6 million of equity. The financing is through the sale of convertible preferred stock with a conversion price of $0.45 per common share with warrant coverage at a strike price of $0.60 per share. The preferred stock provides a dividend of 4% for the first year and 8% thereafter. Upon full conversion, the preferred stock would represent 8 million shares of common stock. This was a private placement transaction, and the issuable common stock is not eligible for resale in the public market for six months or until a resale registration statement is filed and goes effective.
In addition, the company entered into a new business financing agreement on February 15, 2011, with Bridge Bank providing for a credit limit of $750,000 backed by accounts receivable.
Full and complete disclosure of all of the terms and conditions of both financing agreements are provided in separate Form 8-Ks filed on February 17, 2011.
"As we mentioned on our Q4 and Year-End 2010 conference call, the capital raise and new financing agreement strengthen our balance sheet and combined with our reduction in operating expenses, give us additional assurance as we focus on achieving EBITDAS break-even at approximately $9 million of quarterly revenue by the middle of this year," stated Barry Cinnamon, Chief Executive Officer of Westinghouse Solar.
About Akeena Solar, Inc. d/b/a Westinghouse Solar (Nasdaq:WEST)
Westinghouse Solar is a designer and manufacturer of solar power systems. Award winning Westinghouse Solar Power Systems provide a leading combination of safety, performance and reliability, while backed by the proven quality of the Westinghouse name. For more information on Westinghouse Solar, visit www.globenewswire.com/newsroom/ctr%3Fd=209178%26l=5%26a=www.westinghousesolar.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D14jdgd14f%252F%252A%252Ahttp%25253A%252Fwww.globenewswire.com%252Fnewsroom%252Fctr%25253Fd%253D201537%252526l%253D5%252526a%253Dwww.westinghousesolar.com%252526u%253Dhttp%2525253A%2525252F%2525252Fwww.westinghousesolar.com%2525252F" title="blocked::http://www.westinghousesolar.com/">www.westinghousesolar.com.
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Safe Harbor
Statements made in this release that are not historical in nature, including those related to future revenue, revenue growth, operating expense rates and cost reductions, and product offerings in future periods, constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "expects," "projects," "plans," "will," "may," "anticipates," believes," "should," "intends," "estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified, and our actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks associated with the inherent uncertainty of future financial results, additional capital financing requirements, development of new products by us or our competitors, the effectiveness, profitability, and marketability of such products, our ability to protect proprietary rights and information, the impact of current, pending, or future legislation, regulation and incentive programs on the solar power industry, the impact of competitive products or pricing, technological changes, our ability to identify and successfully acquire and grow distribution customers, and the effect of general economic and business conditions. All forward-looking statements included in this release are made as of the date of this press release, and Westinghouse Solar assumes no obligation to update any such forward-looking statements.