Axion International Holdings Inc. announced that the company has secured an initial equity investment from Lincoln Park Capital, a Chicago-based private equity firm. The company will be purchasing 100,000 shares of the company’s stock at a price of $2.05 a share, as well as warrants to acquire 50,000 shares at $2.91 per share.
Axion uses recycled plastic to manufacture high-load industrial products.
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| Axion's recycled plastics railroad ties are being tested by a number of railroads. |
“We view this initial small equity investment as highly accretive considering the funds will be strategically leveraged primarily for capital expenditures, including inventory procurement necessary to satisfy existing orders.”
“We are very pleased Lincoln Park Capital has provided us with the flexible financing that allows Axion to sell further shares to Lincoln Park, at Axion’s sole option. Their willingness to purchase shares in excess of the current market price clearly illustrates confidence in both our management and our ability to execute our business plan,” says Axion CEO, Jim Kerstein. “We view this initial small equity investment as highly accretive considering the funds will be strategically leveraged primarily for capital expenditures, including inventory procurement necessary to satisfy existing orders.”