Ener-Core Inks Definitive Agreements For Private Placement Transaction

(RTTNews) - Ener-Core, Inc. (ENCR), a provider of commercialized Power Oxidation technology and equipment, said it entered into definitive agreements on December 30, with certain institutional and other accredited investors for a private placement of 625,000 shares of common stock at a price of $4 per share, and five-year warrants to purchase up to an additional 312,500 shares of common stock at an exercise price of $5 per share, for an aggregate offering amount of $2.5 million.

As part of the terms of the private placement, the company has agreed to file a registration statement to register for resale the shares of common stock and the shares underlying the warrants issued in the private placement.

The private placement is expected to close on or about December 31, subject to satisfaction of customary closing conditions.

Ener-Core intends to use the proceeds from the private placement for general corporate purposes and to continue supporting the fulfillment of product deliveries against closed commercial orders.