Capstone Green Energy raises $15 million in private placement

Capstone Green Energy Holdings, Inc. (OTCQX: CGEH) announced it has entered into a securities purchase agreement for a private investment in public equity financing expected to generate gross proceeds of approximately $15 million before fees and expenses.

The microturbine energy systems provider will issue 7.5 million shares of common stock at $2.00 per share, representing an 8% premium over the November 21 closing price of $1.85. The private placement is expected to close on or about November 25, 2025, subject to customary closing conditions.

The company plans to use net proceeds to repay approximately $8 million of outstanding debt maturing December 7, 2025, fund product development, support expansion into the AI data center market, and provide working capital for general corporate purposes.

Members of management and the board of directors participated in the financing. Craig-Hallum Capital Group LLC served as sole placement agent for the transaction.

The company and its directors and executive officers agreed to a 90-day lock-up period, while investors in the private placement agreed not to engage in short sales or hedging transactions for 90 days after a resale registration statement becomes effective.

"After carefully reviewing all available financing options, the Board determined that this structure provides the most timely, prudent and value-aligned solution for shareholders," said Robert Powelson, interim chairman of Capstone's board of directors.

Chief Executive Officer Vince Canino described the financing as "an important milestone" as the company builds momentum in core markets while pursuing opportunities in AI data center applications.

The securities have not been registered under the Securities Act of 1933. Capstone agreed to file a registration statement with the Securities and Exchange Commission for resale of the shares.

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