Telkonet Announces Equity Financing, Conversion of Board Fees, and Year-End Earnings Call
SOURCE: Telkonet MILWAUKEE, WI–(Marketwire – August 9, 2010) – Telkonet, Inc. ( OTCBB : TKOI ), a leading Clean Technology company committed to integrating intelligent networking and smart energy management solutions, announced today that it has closed the private placement announced on August 6, 2010, raising $1.335 million in gross proceeds through the private placement of the Company’s Series B Convertible Redeemable Preferred Stock and Warrants to purchase Common Stock. The investors purchased an aggregate of 267 shares of the Company’s Series B Convertible Redeemable Preferred Stock, par value $0.001 per share (“Series B”) at a price per share of $5,000, and were issued warrants (“Warrants”) to purchase an aggregate of 5,134,626 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”). Each Series B share is convertible into approximately 38,461 shares of Common Stock at a conversion price of $0.13 which is equal to the closing bid price of a share of Common Stock on August 4, 2010. The Warrants have an exercise price of $0.13, which is equal to the closing bid price of a share of Common Stock on August 4, 2010. Except as specifically provided or as otherwise required by law, the Series B shares will vote together with the Common Stock and the Company’s Series A Convertible Redeemable Preferred Stock on an as-if-converted basis and not as a separate class. Each Series B share will have a number of votes equal to the number of shares of Common Stock then issuable upon conversion of such shares of Series B.