American DG Energy (ADGE) Takes Steps to Strengthen Balance Sheet, Eliminate Portion of Debt
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American DG Energy Inc. (NYSE: ADGE) announced the execution of a series of transactions that strengthen the Company's balance sheet through the elimination of a portion of the company's outstanding convertible debt. In addition, these steps remove any potential shareholder dilution that may have resulted from a debt to equity conversion of these securities. In total, the transactions eliminated $9.3 million in convertible debentures ($8.5 million net of prepaid interest) that, if converted, would have caused significant dilution to American DG Energy's existing shareholder base.
Speaking about the transaction, American DG Energy's co-Chief Executive Officer John Hatsopoulos said, "These transactions put American DG on more secure financial footing. Although we still have a lot of work to do righting the installed base, we now have the space and time to carefully implement our site improvement initiatives. Right now, the Company has enough money to complete our planned site improvements and backlog of projects. Although we cannot currently finance any new projects, management continues to explore all alternatives for the business going forward." For more information about management's business plan, please see a detailed discussion of the sites initiative in the Company's most recent filing on Form 10-K dated March, 30, 2016.
American DG Energy exchanged approximately 14.72 million shares in EuroSite Power Inc. (OTCQX: EUSP), a nearly 22% stake in its European subsidiary, for elimination of a portion of the outstanding 6% convertible debentures due May 2018. With this swap of EuroSite Power shares in exchange for partial extinguishment of the convertible debt, American DG Energy reduced the convertible debt outstanding to $9.2 million. The Company is pursuing a similar debt exchange transaction for the remaining convertible debt outstanding and expects to complete that subsequent transaction in the coming weeks.
American DG Energy will release its financial results for the first quarter of 2016 before the market opens on Friday, May 13, 2016. The earnings press release will be available in the "News Releases" section of the Company website at http://investors.americandg.com/. Members of American DG's senior management team will hold a conference call and webcast on the same day at 11:00 AM Eastern Time to discuss the company's first quarter financial performance and the recent transactions. Details and dial in information for the event may be found at: http://investors.americandg.com/2016-04-19-American-DG-Energy-Schedules-Earnings-Release-and-Conference-Call-for-First-Quarter-2016-Results.
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