KANSAS CITY, Mo., March 7, 2011 /PRNewswire/ -- Smith Electric Vehicles U.S. Corporation ("Smith") today announced the issuance and sale of $39 million of Series B Convertible Preferred Stock and the conversion of Bridge Notes and the exercise of related Warrants into $19 million of Series B Convertible Preferred Stock.
As previously announced, the company acquired Smith Electric Vehicles UK effective January 1, 2011. The purchase consideration was largely deferred with the balance due as a series of monthly cash payments. Per the purchase agreement, $5 million of proceeds from this equity raise will be used as a prepayment of the monthly installments. This prepayment will result in a payment holiday of approximately seven months.
The remaining net proceeds will be used for general corporate purposes and working capital needs as Smith continues to ramp up its supply chain and manufacturing capabilities.
Wynston Hill Capital, LLC acted as Placement Agent on this transaction.
About Smith Electric Vehicles:
Smith produces the Newton, which is the only all-electric medium/heavy-truck offering on the GSA schedule. The truck delivers a top speed of 55 mph, offers end users battery ranges from 50 to 120 miles on a single charge and a payload of more than 16,000 pounds. It operates at peak effectiveness in urban applications that demand heavy stop and go driving. A single charge provides more than enough range for most urban delivery routes. Smith vehicles feature the latest in Lithium-ion battery cell technology, power management and direct drive trains.
Specific benefits associated with the Smith trucks include:
- Can run more than 100 miles on a single charge
- Zero emissions
- Smith trucks offer fuel costs that are as much as 80 percent lower than diesel
- Provides a long term, economically viable solution to our customers
Smith began production of the Smith Newton at its Kansas City assembly plant in October 2009. The Smith Newton is the world's largest battery-electric-powered truck and runs without noise or vibration. It was the first all-electric commercial truck to achieve new vehicle emissions certification in California.
SOURCE Smith Electric Vehicles U.S. Corporation