Media
Contacts:
Telkonet
Investor Relations, 240.912.1811, ir@telkonet.com
Garrett
Axford, Georgina Garrett / Simon Jones, 866.940.9987, +44.1903.854900 mail@garrett-axford.co.uk
For
Immediate Release
Telkonet
Raises $1.075 Million in Private Placement
November
19, 2009: Germantown, MD – Telkonet, Inc. (PINKSHEETS: TKOI), a Clean Technology
company that develops and manufactures proprietary energy management and Smart
Grid networking technology, today announced that it has closed the private
placement announced on November 16, 2009, raising $1.075 million in gross
proceeds through the private placement of the Company's Series A Convertible
Redeemable Preferred Stock and Warrants to purchase Common Stock.
The
investors purchased an aggregate of 215 shares of the Company's Series A
Convertible Redeemable Preferred Stock, par value $0.001 per share ("Series A"),
at a price per share of $5,000, and were issued Warrants ("Warrants") to
purchase an aggregate of 1,628,800 shares of the Company's common stock, par
value $0.001 per share (the "Common Stock"). Each Series A share is convertible
into approximately 13,774 shares of Common Stock at a conversion price of $0.363
per share, which is equal to 110% of the volume-weighted average price of a
share of Common Stock measured over the 30-day period immediately preceding
November 12, 2009. The Warrants have an exercise price of $0.33, which is equal
to the volume-weighted average price of a share of Common Stock measured over
the 30-day period immediately preceding November 12, 2009. The Company will file
a registration statement covering the resale of the shares of common stock to be
acquired by the purchasers upon conversion of their Series A shares following
the conclusion of a rights offering to be filed with the SEC.
Except as
specifically provided or as otherwise required by law, the Series A shares will
vote together with the Common Stock shares on an as-if-converted basis and not
as a separate class. Each Series A share shall have a number of votes equal to
the number of shares of Common Stock then issuable upon conversion of such
shares of the Series A.
“We are
pleased with the strong investor response to this round of financing in this
difficult economic climate. We believe this investment is a validation of both
our products and growth opportunity,” stated Jason Tienor, Telkonet’s President
and Chief Executive Officer.
A portion
of the proceeds received by the Company came from certain members of Company
management in connection with the conversion of a portion of outstanding
indebtedness of the Company owed to such members of management. The Company
intends to use the net proceeds from the sale of the Series A shares and the
Warrants for general working capital needs and may use the proceeds in the short
term to repay certain outstanding indebtedness, and to pay expenses of the
offering as well as other general corporate capital purposes.
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy any of the securities mentioned in this release. The securities
described in this release have not been registered under the Securities Act of
1933, as amended, or any state securities laws, and may not be offered or sold
in the United States absent an effective registration statement covering such
securities or an applicable exemption from such registration
requirements.
(more)
About
Telkonet
Telkonet,
a Clean Technology company, provides integrated, centrally-managed energy
management and Smart Grid networking solutions that improve energy efficiency
and reduce the demand for new energy generation. The company’s energy management
systems are dynamically lowering HVAC costs in over 160,000 rooms, and are an
integral part of various utilities’ green energy efficiency and rebate
programs.
Primarily
targeting Smart Grid and utility applications, Telkonet’s patented powerline
communications platform delivers cost-effective, robust networking, with
real-time online monitoring and maintenance capabilities, increasing the
reliability and energy efficiency across the entire utility grid. www.telkonet.com.
###
All
company, brand or product names are registered trademarks or trademarks of their
respective holders.
Statements
included in this release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
involve a number of risks and uncertainties such as competitive factors,
technological development, market demand and the Company’s ability to obtain new
contracts and accurately estimate net revenue due to variability in size, scope
and duration of projects, and internal issues in the sponsoring client. Further
information on potential factors that could affect the Company’s financial
results, can be found in the Company’s Registration Statement and in its Reports
on Forms 8-K filed with the Securities and Exchange Commission
(SEC).