FuelCell Energy Inc. in Danbury says it will net about $17.8 million from the private placement of common stock and warrants with an institutional investor.
FuelCell did not identify the investor in the transaction set to close on Thursday.
FuelCell’s technology converts various fuels to electricity.
The parties agreed to a deal in which FuelCell will issue one share of common stock and one warrant to buy an additional share at a unit price of $1.87 per unit. The warrants, redeemable six months after the deal closes, have an exercise price of $2.29 a share.
FuelCell said the proceeds will pay for product development and energy projects, as well as the expansion of its manufacturing and for general corporate purposes.
In midafternoon trading Monday, FuelCell was down 8 cents, or 3.9 percent, to $2.
The company also has the right, under certain conditions, to require the investor to buy an extra 10 million shares nine months to 21 months after closing, a regulatory filing shows. Lazard Capital Markets LLC is sole placement agent for the offering.
Hartford law firm Robinson & Cole also issued an opinion in the deal.
FuelCell says it has 50 installations worldwide using its Direct Fuel Cell brand generators to convert fossil fuels and waste biogases into electricity.
