SAN FRANCISCO, June 19, 2013 (GLOBE NEWSWIRE) -- ECOtality, Inc. (Nasdaq:ECTY), a leader in clean electric transportation, today announced that it has closed its previously announced private placement of common stock and warrants to certain institutional investors. Gross proceeds from the issuance were $8.2 million and will be used for general corporate and working capital purposes.
"We are making good progress to advance our Blink Network and monetize our EV solutions," said Ravi Brar, CEO of ECOtality. "This capital raise helps us continue our operational momentum as we execute on our strategic initiatives to expand our diversified business lines and continue to build our business."
The private placement resulted in the issuance of 5,123,423 shares of ECOtality's common stock priced at $1.60 per share. In addition, each participating investor received a warrant to purchase a number of shares of ECOtality's common stock equal to 50% of the total number of shares of ECOtality's common stock purchased by such investor at the closing of this offering. The warrants will be exercisable for a five-year period beginning six months after the date of issuance at an exercise price of $2.04.ECOtality intends to file a Registration Statement covering the resale of the common stock underlying the shares and warrants on or before July 18, 2013. The securities offered and described above have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The issuance of the securities in the transaction described above will be effected without registration under the Securities Act in reliance on Section 4(2) thereof or Rule 506 of Regulation D thereunder based on the status of the Investors as accredited investors as defined under the Securities Act, and such transaction will be effected without using any form of general advertising or general solicitation as such terms are used in Regulation D.