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UPDATE 1-Akeena to sell 4 mln shares at discount
October 8, 2010 / 10:54 AM / 7 years ago

UPDATE 1-Akeena to sell 4 mln shares at discount

* To sell shares at 10 pct discount

* To also issue warrants to buy 1.6 mln shares

Oct 8 (Reuters) - Akeena Solar WEST.O, which operates under the trade name Westinghouse Solar, said it would sell 4 million shares to institutional investors at a 10 percent discount to the stock’s Thursday close.

The company said it would sell the shares at 55 cents apiece, for total proceeds of $2.2 million. Akeena stock had closed at 61 cents Thursday on Nasdaq.

Akeena added it would issue warrants to purchase up to 1.6 million shares at 61 cents per share. The warrants will not be exercisable until six months after issuance and have a term of five years, it said.

In May, the company signed a deal to manufacture, market and install solar panels under the Westinghouse name, which is controlled by CBS Corp (CBS.N).

Akeena said last month it would exit the photovoltaic solar installation business in California and take a related third-quarter charge of $2.5 million.

About 75 percent of the company’s second-revenue of $9.9 million came from its installation business. [ID:nN1063193]

Akeena, which had 40.8 million shares outstanding as of July 28, has since seen its stock price drop over 18 percent. (Reporting by Adveith Nair in Bangalore; Editing by Aradhana Aravindan)

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