The money comes through for purchase of Stones River Cos.
Posted on November 3, 2009 at 1:44 pmWhen an Ohio-based lighting systems maker inked a letter of intent last month to buy Madison-based electrical and lighting management provider Stones River Cos., there was reason to doubt the deal would ultimately go down as planned.
Not only did Energy Focus Inc. say it would have to raise $3.5 million on the capital markets in order to acquire the company, but it raised the specter of having to “cease operations or seek federal bankruptcy protection” without that cash.
Looks like the buyer dodged the bullet. Nasdaq-listed Energy Focus yesterday announced it has raised $3.75 million in the first round of a 5 million-share offering – a result so successful it no longer needs to float a second round. Although the company has not divulged what it is paying for Stones River, it said the offering’s main purpose was to fund the deal. It now expects to close on the purchase within 30 days.
