WALTHAM, Mass., July 27 American DG Energy Inc. (OTC Bulletin Board: ADGE), a leading On-Site Utility offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, is pleased to announce that it has entered into definitive agreements to sell restricted common stock for aggregate proceeds of $3,492,650, which increases the equity of the Company's common stock by that amount.
Pursuant to the agreements the Company sold to certain investors 1,663,167 shares of restricted Common Stock at $2.10 per share at an aggregate purchase price of approximately $3,492,650. The Company also granted the investors the right to purchase additional shares of Common Stock at a purchase price of $3.10 per share by December 18, 2009. The proceeds of the private placement will be used to fund additional installations of the Company's On-Site Utility energy systems and for general corporate and working capital purposes.
This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities, nor shall there be any sale of the securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any state.
About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities -- without any capital or start-up costs to the energy user. American DG Energy is headquartered in Waltham, Massachusetts. More information can be found at www.americandg.com.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
SOURCE American DG Energy Inc.