Capstone Turbine Prices Its 2.7 Million Shares

Capstone Turbine Corporation (NASDAQ: CPST) revealed that it struck an underwriting deal to sell 2.7 million shares of its common stock through a public offering. Aside from that, the company would also offer pre-funded Series B warrants purchasing a maximum of 5.515 million shares that would be offered in lieu of its common stock to those purchasing common shares in the offering.Capstone Turbine said that the offering included Series A warrants to acquire 4.107 million shares. The company disclosed that for every two shares to be sold with one Series A warrant to acquire one common stock, the collective negotiated price was $3.50. Similarly, for every two Series B warrants that would be sold with one Series A Warrant to acquire one share, the collective negotiated price was $3.48.The company said that every series A Warrant would have an initial exercise price of $2.55 per share of Common Stock, which would be exercisable six months after the issuance date but would expire five years after the first day of exercisable. In all, the company would get gross proceeds of approximately $14.3 million, and the net proceeds are expected to be approximately $13.1 million. Capstone indicated that it would use the proceeds from the offering to fund general working capital requirements and for other general corporate purposes. The company said that the offering would close on or about April 22 subject to the satisfaction of customary closing conditions.Following the news, shares of the company traded down by 23.11%.