Flux Power Holdings, Inc. announced the completion of a $1.944 million private placement of common stock. The placement was completed in three tranches between January and March 2014, of which the first two were previously disclosed. Total consideration was comprised of $1.394 million in cash and the conversion into equity of $0.55 million outstanding under a $1 million revolving note held by the Company’s largest shareholder.
Flux Power CEO, Ron Dutt, commented, “We are grateful for the support of new and existing investors during this exciting transitional period at Flux. Net proceeds of the placement will be used to fund operations, including the expansion of our sales, marketing and distribution efforts and to fund inventories. We remain focused on the sizeable opportunity in the industrial motive power market, where Flux offers a superior value proposition compared to legacy solutions, faces limited competition, and is gaining traction with dealers, distributors, and original equipment manufacturers. We are also pursuing select opportunities to provide portable power solutions for military field operations, on-location entertainment productions and other potential applications.”
The placement consisted of restricted Flux Power common stock priced at $0.06 per share and the issuance of five-year warrants to purchase one additional Flux Power common share at $0.20 per share for every two common shares purchased in the private placement. Giving effect to the common stock issued pursuant to the offering, Flux Power now has approximately 80,635,576 basic shares outstanding as of March 13, 2014.