PHOENIX, Jan. 17, 2020 /PRNewswire/ — Alpine 4 Technologies, Ltd. (OTCQB: ALPP), a U.S based holding company, with a portfolio of unique companies in manufacturing, construction services and high-tech, today announced an equity purchase agreement with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor for up to $10 million over the next 36 months.
Upon entering into the agreement, LPC purchased $250,000 of Alpine 4’s common stock and Alpine 4 will have the option but not the obligation to sell to LPC up to an aggregate of $10 million in shares of common stock over a 36-month period contingent and commencing upon the effectiveness an S1 registration statement and satisfaction of other conditions contained in the agreement.
Kent Wilson CEO of Alpine 4 had this to say: “As we began our search for the right capital partner we wanted to ensure that we were not only accessing capital that met our cost of capital needs, but also finding a firm that has the desire to take longer term positions in Alpine 4. Under this financing agreement Alpine 4 can opportunistically access capital at our option under favorable terms to advance our business objectives and help in the reduction of our debt burden.”
Under the terms of the common stock purchase agreement and once a registration statement relating to the transaction is declared effective, Alpine 4 will control the timing and amount of any future sales of shares of common stock to LPC. LPC has no right to require any sales by Alpine 4 under the agreement but is obligated to make purchases according to Alpine 4’s direction, as governed by the agreement. There are no upper limits to the price LPC may pay to purchase common stock from Alpine 4 and the purchase price of the shares will be based on the prevailing market prices of Alpine 4 ‘s shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, in any direct or indirect short selling or hedging of Alpine 4’s shares of common stock. There are no limitations on the use of proceeds, and there are no rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. In consideration for entering into the purchase agreement, Alpine 4 has issued shares of common stock to LPC as a commitment fee. Alpine 4 maintains the right to terminate the common stock purchase agreement at any time, at its discretion, without any additional cost or penalty. A description of the common stock purchase agreement and related registration rights agreement is set forth in Alpine 4’s Current Report on Form 8-K filed today with the Securities and Exchange Commission (SEC). No financial advisory fees were paid in connection with the equity purchase agreement.
The securities sold and the securities that may be sold in the future in this transaction have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and have not been registered or qualified under any state securities laws, and therefore may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements, and registration or qualification and under applicable state securities or “Blue Sky” laws or an applicable exemption from such registration or qualification requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
Contact: Investor Relations
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