Enova Systems, Inc. (NYSE AMEX:ENA)(AIM:ENV)(AIM:ENVS), a leading
developer of proprietary hybrid electric and all-electric drive systems
and drive system components for the emerging green commercial vehicle
market, announced today that it has signed a purchase agreement on April
24, 2012 for the sale, from time to time, of $3.4 million of its common
stock, including an initial investment of $250,000, with Lincoln Park
Capital Fund, LLC (LPC), a Chicago-based institutional investor. The
securities LPC agreed to purchase under this purchase agreement were
offered through a prospectus supplement pursuant to the Company's
effective shelf registration statement and base prospectus contained
In addition, Enova previously entered into a separate purchase agreement
with LPC that, subject to certain conditions including the effectiveness
of a registration statement to be filed with the US Securities and
Exchange Commission covering the resale of the shares that may be issued
to LPC, commits LPC to purchase up to $6.6 million of Enova’s common
stock over a 36-month period. LPC has no right to require any sales by
Enova, but is obligated to make purchases as Enova directs in its sole
discretion in accordance with the purchase agreement, which may be
terminated by Enova at any time, without cost or penalty.
"We are pleased to conclude on these funding agreements with LPC which
provide us flexibility to pursue our business goals," said Michael
Staran, CEO of Enova. "We plan to use any proceeds from this agreement
to fund current operations and implement value added initiatives."
"As Enova looks forward to its future cash needs, we consider these LPC
agreements to provide a backstop to enable Enova to continue pursuit of
its business strategy," stated John Micek, CFO of Enova.
Under both agreements, there are no upper limits to the price LPC may
pay to purchase Enova common stock. Any time that Enova elects to sell
shares to LPC, the pricing of that sale will be fixed pursuant to a
formula that is based upon the market price of Enova common stock
immediately preceding the notice to LPC without any fixed discount.