AETI Sells $5 Million In Stock To Oil Investor

Posted by NAW Staff on April 19, 2012 No Comments
Categories : FYI

American Electric Technologies Inc. (AETI), a supplier of power-delivery solutions for the energy industry, has entered into a definitive agreement to sell $5 million of convertible preferred stock in a private financing to JCH Crenshaw Holdings LLC of Beaumont, Texas.

JCH Crenshaw Holdings LLC is led by Casey Crenshaw, who is currently executive vice president of The Modern Group, a family of oil-field equipment companies. As part of the investment, Crenshaw will join AETI's board of directors.

The agreement provides for the issuance of $5 million of Series A convertible preferred stock, convertible into 1 million shares of common stock at a conversion price of $5.00 per share. The agreement also provides for the issuance of warrants to purchase 125,000 shares of common stock at an exercise price of $6.00 per share and 200,000 shares at an exercise price of $7.00 per share.

AETI says it is raising this capital for general corporate purposes, which may include the expansion of its manufacturing capacity to meet growing demand for its power-delivery products; accelerating its international expansion in key energy markets, including Brazil and China; and making additional corporate acquisitions.

Leave a Comment