Energy Focus Completes Convertible Debt Financing
Energy Focus announced it completed the convertible debt financing it embarked upon March 12, 2013. The financing has been completed at $5.9 million, $1.1 million over an original target of $4.8 million.
The financing consists of unsecured, subordinated, convertible promissory notes that mature on December 31, 2016, have a five percent annual interest rate, and are convertible into common stock of the Company at the rate of $0.23 per share. The proceeds will be used to finance the company’s operations and fund growth.
“We are extremely encouraged by and grateful for the support to the company and to its vision to be the leader in the rapidly emerging LED lighting retrofit market from both the existing and new, strategic investors who participated in the financing,” said James Tu, Energy Focus’s executive chairman. “With this financing and our existing credit facility we are positioned to meet our growing working capital needs for 2013 and to strengthen our operating infrastructure for our rapid expansion plan ahead.”
Energy Focus is a provider of energy efficient LED lighting products, turnkey energy efficient lighting solutions and a developer of energy efficient lighting technology.