SEFE recently announced that it has signed a term sheet for $2 million in financing through a nonconvertible preferred debenture. The new funding is anticipated to help SEFE continue to advance its efforts to research, develop, and commercialize its Harmony III units, while also protecting the intellectual property developed over the past four years.
In order to preserve shareholder value and avoid dilution, the company chose a debt structure rather than equity financing. According to the press release issued, the term is five years and the 8 percent coupon will be paid semiannually. Completion of the funding is subject to customary closing documents.
"I am very pleased that our financial partner, Riverbend, LLC, was able to recognize that our technology and patents represent significant value," stated SEFE CEO Don Johnston. It was noted that the company intends, at some point, to do an additional round of permanent financing to take out this round.
SEFE is focused on the development and commercialization of the aerostatic collection of atmospheric electricity. The goal is to reach into the atmosphere and economically tap the significant and constant static charge differential that exists, transforming it into inexpensive usable electric power.
To learn more about the company, visit www.sefelectric.com
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