Fuel cell developer Medis Technologies Ltd. (Nasdaq: MDTL) has received a funding commitment from California-based private equity fund Ascendiant Capital Group LLC Medis stated that its equity line funding agreement, signed on February 13, "is one of multiple alternatives that the company is currently exploring to fund its operational restructuring and growth over the next twelve months."
Medis also announced the departure of founders, Robert Lifton and Howard Weingrow.
Under the agreement, Ascendiant Capital can invest up to $6 million in Medis over the next two years in exchange for an equity stake, based on the share's average price during the ten days following the investment, at a discount of 10.5%.
Medis undertook to use half the proceeds during the coming year, but did not undertake to use the remaining $3 million.
In a separate development, Medis yesterday announced that its founders chairman Robert Lifton and deputy chairman Howard Weingrow had retired on February 16, and that CEO Jose Mejia was appointed chairman. The company also appointed Thomas Finn as EVP operational restructuring.
Medis develops and sells portable fuel cells can provide up to 90 hours of green energy to power personal electronic devices such as cell phones, MP3 players, flashlights, and other devices. Subsidiary Cell Kinetics Ltd. is developing similar fuel cells for the medical devices market.
Medis closed at $0.43 on Nasdaq yesterday, giving a market cap of $19.2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2009
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