Cirque Energy has entered into a USD5 million common stock purchase agreement with Kodiak Capital Group, a Newport Beach, California-based institutional investor.
Cirque has agreed to file a registration statement with the US Securities and Exchange Commission covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement.
After the SEC has declared the registration statement related to the transaction effective, Cirque will have the right at its sole discretion over a period of one year to sell up to USD5 million of common stock under the terms set forth in the agreement.
Proceeds from this transaction, if any, will be used to further develop and commercialise projects using Cirque’s proprietary deployable gasification unit (DGU) technology, including the construction and installation of the previously-announced Midland Biomass Power Station in Midland, Texas in addition to executing upon our joint development agreement with Northrop Grumman for DGU fabrication and deployment, both of which Cirque expects to begin generating revenue in early 2015. Cirque will also use some of the proceeds, if any, to retire more expensive, short-term debt obligations and to explore complementary, accretive, and revenue-generating strategic acquisitions.
“We are very excited about the opportunity to receive this capital infusion and the vote of confidence in our technology and business model by an investment group as renowned and successful in the alternative energy space as Kodiak,” says Joseph L DuRant, Cirque’s president, chairman, and chief executive officer.
Ryan Hodson, managing director of Kodiak, says: “We are equally pleased to be able to assist an industry-leading company such as Cirque as it moves forward with the commercialisation of its revolutionary waste-to-energy technology and products.”
