Telkonet, Inc. announced that it expects to receive $5 million in funding from VDA Group SPA
August 05, 2021
Share
Telkonet, Inc. announced that it has entered into a purchase agreement with VDA Group SPA for 162,900,947 common shares at a par value of $0.001 per share and 105,380,666 purchase warrants for gross proceeds of $5 million on August 6, 2021. The warrant entitled to purchase the additional shares of common stock, at an exercise price of $0.001 per share, at any time beginning on the date the Company achieves a volume weighted average price of the aggregate outstanding common stock of at least $17,000,000, measured for a period of time consisting of sixty consecutive trading days and ending five years after the date of issuance of the warrant. The warrant may not be exercised for the first 12 months from the closing of the transaction. post transaction the investor will hold 53% of issued and outstanding common stock of the company, on fully diluted basis and eventually own as much as 65% of the issued and outstanding common stock on a fully diluted as exercised/converted basis if it fully exercises the warrant, which is majority stake. The transaction is subjected to customary closing conditions, including, without limitation approval of shareholders if the company. The transaction is expected to close in the fourth quarter of 2021. No finder’s fees paid in the transaction.
Telkonet, Inc. is a provider of the EcoSmart and Rhapsody Platforms of intelligent automation solutions designed to optimize energy efficiency and analytics in support of the emerging Internet of Things (IoT). Its EcoSmart Platform consists of EcoSmart Product Suite, EcoCentral, and EcoCare. Its EcoSmart Product Suite includes thermostats, sensors, switches, and outlets, which provide monitoring, management, and reporting over individual and grouped energy consumption throughout building environments. Its EcoCentral is a cloud-based dashboard that provides visualization and remote management services. Its EcoCare offers professional support and maintenance services, including engineering, analytics, reporting, software and hardware updates. The Rhapsody Platform focuses on utilizing Wi-Fi and Bluetooth low energy (BLE) for mobile application-based setup and configuration. Its platforms are deployed primarily in the hospitality, educational, governmental and other commercial markets.