FORT WORTH, USA: Entech Solar Inc., with plans to become a leading developer of renewable energy technologies, has entered into a preferred stock purchase agreement with Socius Capital Group LLC, a Delaware limited liability company, doing business as Socius Energy Capital Group, LLC. Pursuant to the purchase agreement, Entech Solar will receive up to $5 million in capital over the next two years.
The Company agreed to sell up to 500 shares of its Series G Preferred Stock, in one or more tranches from time to time. The tranches will be sold at the Company’s sole discretion, at a purchase price of $10,000 per share, for an aggregate issue price of up to $5 million.
With each tranche, Socius will also receive five-year warrants to purchase shares of the Company’s common stock. The exercise price of the warrants will equal the closing bid price of the Company’s common stock on the date the Company provides notice of a tranche to Socius.
Funding under the agreement with Socius is subject to the satisfaction of a number of conditions, including the effectiveness of a registration statement that the Company will file with the Securities and Exchange Commission relating to the common stock that Socius may purchase under the warrants. Under the terms of the purchase agreement, Entech Solar will pay Socius a commitment fee of $250,000 payable in cash or in the Company’s common stock.
“We are pleased to secure a financing source that will support the Company’s continued development of its renewable energy technologies for commercial, industrial and utility markets,” commented David Gelbaum, CEO and Chairman of Entech Solar. “The flexibility of this committed financing will improve the Company’s ability to achieve critical milestones as we progress through product development.”
“At Entech Solar, we are designing and developing a new generation of concentrating solar modules that have the potential to be truly disruptive in the concentrating solar space – with improved efficiencies, reduced costs, smaller size, and additional applications. These modules will provide both electricity and thermal energy as part of our ThermaVolt product line and electricity-only as part of the SolarVolt product line. The Company also recently launched and is selling a patented tubular skylight technology that provides superior light output and optical efficiency for commercial and industrial green building initiatives.”