Emcore Corp. (EMKR), a manufacturer of compound semiconductor-based products, on Monday said that it agreed to sell 2 million shares of series D preferred stock of WorldWater & Solar Technologies Corp. (WWAT.OB), together with 200,000 warrants, to Quercus Trust, a major shareholder of both Emcore and WorldWater, for $6.54 per share.
The series D preferred stock is convertible into WorldWater common stock at a ratio of 10 to 1, and each of the warrants entitles the holder to purchase a share of series D preferred stock for $3.17 per share.
The company noted that the series D preferred stock of WorldWater offer was made through two closings, one for 1 million shares and 100,000 warrants, which closed on June 27. The second offering is for an equal number of shares and warrants, to close before July 31.
The Albuquerque, New Mexico-based company said it will receive total proceeds of about $13.1 million from the sale. Emcore said it sold 2.2 million of its 5.4 million shares and warrants of WorldWater, representing a 130% return on investment.
EMKR closed Monday's regular trading session at $6.26, down 97 cents or 13.42%. WWAT.OB ended Monday's regular trading session at $0.71, up 2 cents or 2.45%.
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