American Power Group Corporation said it has completed a private placement for $2 million of 10 percent Series B Convertible Preferred Stock with Arrow, an investment vehicle for Longbow Technology Ventures.
The Series B Convertible Preferred Stock has a 10 percent annual dividend, payable quarterly at the company’s option in cash or in common stock and is convertible to common stock at a conversion price of $0.40 per share. The investor also received a five-year warrant to purchase a number of shares of common stock equal to the number of conversion shares, exercisable at $0.50 per share. Both the preferred stock and the warrants are subject to adjustment for certain dilutive issuances and, upon other customary terms, may be converted or exercised, at any time.
Lyle Jensen, American Power Group’s CEO, stated, “We are pleased that our patented Turbocharged Natural Gas® technology has attracted the investment and strategic business support of the team from Longbow Technology Ventures. They bring much more than capital to the table and we look forward to working with them to open new strategic partnership doors as well as accelerating several key revenue generating initiatives.”
Press Release; Image: APG