Orange County Business Journal

Quantum to Raise $2.7M in Direct Offering

Chris Casacchia Thursday, May 16, 2013

Lake Forest-based Quantum Fuel Systems Technologies Worldwide Inc. on Thursday announced it will raise $2.7 million in a direct offering for working capital and other general corporate purposes.

Under the deal, Crede Capital Group LLC in Los Angeles will acquire 4.9 million shares of common stock from Quantum, with an option to buy an additional 2.9 million shares over the next five years.

The offering is expected to close today.

The deal follows Wednesday’s announcement the company completed the sale of one of its wind farms in Canada to Leader Resources for $406,000, plus the assumption of about $1.1 million in debt.

Quantum is undergoing a transition to exit from unprofitable renewable energy sectors and refocus efforts on producing natural gas storage tanks, its primary source of revenue.

Quantum shares were down 3.3% at the close of trading Thursday to a market value of about $29.8 million.

Newport Beach-based Roth Capital Partners LLC was Quantum’s exclusive placement agent in the offering and received a cash fee of $210,000.