Blue Earth Solutions raises
$14.1 million from new investors
Blue Earth Solutions, Inc. announced the closing
of a private placement with gross proceeds of approximately
$14.1 million. The private placement was oversubscribed.
The company only sought to raise $10 million initially
but expanded it due to demand. The sale consisted
of approximately 28 units, each holding 50,000 shares
of Series C Preferred Stock with voting rights,
conversion features, dividends and a liquidation
value of $10.00 per share. Conversion rights include
warrant coverage at an exercise price of $8.00 per
share until December 31, 2010. The private placement
is subject to all regulatory approvals.
The proceeds of the private placement will be used
to accelerate expansion into new locations, secure
new facilities and capital equipment, evaluate international
growth opportunities and fund general administrative
and working capital requirements.
In connection with Blue Earth’s investment, it has
finalized a $4.1 million purchase order of eight
new StyroSolve™ extrusion systems, which will add
production capacity of approximately 20,000 lbs.
of polystyrene recycling per hour. The polystyrene
product market is estimated at $27 billion annually,
extending throughout industrial, commercial and