NACEL Energy says it has raised $750,000 in working capital, which it will use to advance its six existing wind projects and, potentially, its future projects.
NACEL says the capital will be used to secure power purchase agreements from utilities, and those agreements will be leveraged to secure project financing for the construction and installation of wind turbines.
The purchase agreement was signed on Nov. 23, 2009, for the issuance of a senior secured convertible note and warrants in a private placement with a single institutional investor. The transaction is subject to customary closing conditions.
The original principal amount of the note is $900,000 and is convertible by the holder into shares of NACEL's common stock at an initial conversion price of $0.90.
In connection with the transaction, NACEL will issue Series A warrants to the investor, which will be exercisable for a period of five years for up to 1.25 million shares of NACEL's common stock, with an initial exercise price of $0.90.
SOURCE: NACEL Energy