Bibra Lake-based ZBB Energy Corporation Ltd has raised around $907,000 in the United States, ahead of the company's IPO there later this year.
This comes on top of the $1.3 million raised through convertible rights issues to US-based Empire Financial Group on three separate occasions this year.
Empire are also a part of this capital raising, as well as two renewable energy funds based in the US and Europe.
The full text of a company announcement is pasted below
ZBB Energy Corporation today completed a further US$687,500 of pre-IPO bridge funding in the United States, with two renewable energy Funds, based in the United States and Europe, and with clients of Empire Financial Group who have subscribed for Convertible Notes in ZBB.
This funding is additional to that previously announced to the market on 11 July 2006, 31 May 2006 and 3 May 2006
The Convertible Notes being issued may be converted at a discount to the final United States IPO price, however they do not entitle the noteholder to receive any shares on subscription for the notes, as originally contemplated and approved by Shareholders, but in substitution the Convertible Notes now bear interest at 15% pa for the period up to conversion. The noteholders may, at their discretion, elect not to convert into ZBB shares on the IPO, in which case they will be repaid from the proceeds of the IPO and will receive 1 warrant (option) for every dollar invested, exercisable at 120% of the IPO price at any time up to 24 months following their
issue.
The issue of any securities beyond ZBB's existing capacity in terms of Listing Rule 7.1 is subject to shareholder approval, if necessary.
The Company intends to issue an announcement to shareholders within the next week on the timetable for the IPO process in the United States.
