Solar Power Inc. has entered into an agreement with institutional and accredited investors to raise $12 million through a private placement of stock, the company announced Wednesday.
The Roseville-based company plans to use the money for “general corporate purposes, including working capital,” Solar Power chief executive officer Steve Kircher said in a news release. Solar Power is a manufacturer, supplier and installer of photovoltaic solar power systems.
“Our pipeline of opportunities has grown significantly in all of our vertical sales channels,” Kircher said. “This additional equity will allow us to capitalize on these opportunities and continue our business growth.”
Venture capital firm WI Harper Group was the lead investor. The firm invests in early and expansion stage companies with significant operations in China and plans to operate internationally. WI Harper manages more than $400 million in invested capital from its offices in Beijing, Taipei and San Francisco, according to its Web site. The company typically invests between $5 million and $15 million in early stage companies.
Deutsche Bank served as the sole placement agent for the transaction.
The securities offered in the private placement have not yet been registered under the Federal Securities Act so they may not yet be offered or sold in the United States. Solar Power has agreed to file a registration statement covering the resale of the common stock purchased by the investors in the private placement.
Shares of Solar Power (OTCBB: SOPW) were down 22 percent, or 40 cents, to $1.40 in early afternoon trading Wednesday.
