A-Power Energy Generation Systems, Ltd., a provider of distributed power generation systems in China and a manufacturer of wind turbines, announced it has signed a Securities Purchase Agreement with several institutional investors. The institutional investors have agreed to purchase Senior Convertible Notes with an aggregate principal amount of $40 million, plus warrants. The company anticipates using the proceeds for expansion of production capacity, enhancement of research and development, and general corporate purposes.
The issuance of the Notes and the Warrants was done in reliance on the exemptions for sales of securities not involving a public offering, as set forth in Section 4(2) and Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended (the ’’Act’’). The underlying shares of common shares associated with the offering have not been registered under the Act, or any state securities laws, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from the registration requirements.
A-Power has agreed to file a registration statement with the SEC covering resales of shares of common stock issued upon the conversion of Notes and upon exercise of Warrants.