Capstone Green Energy Holdings entered into securities purchase agreements for $112.5M investment, issuing $80M Series A Convertible Preferred Stock and $32.5M common stock, to retire legacy preferred equity and fund growth.
Key takeaways
On March 29, 2026, Company signed agreements with Monarch affiliates for $80M Preferred Stock (80,000 shares at $1,000 each, 5% PIK dividend, $5 conversion price) and $15M common stock (3,333,334 shares at $4.50 each).
Concurrent PIPE offering of $17.5M common stock (3,588,889 shares) and 300,000 pre-funded warrants at $4.50 equivalent.
$85M proceeds to redeem Capstone Green Energy LLC's Series A Redeemable Preferred Units (37.5% equity stake) from CDSS, making OpCo 100% owned by Company.
Monarch gains board appointment rights (2 directors at 20% as-converted ownership), preemptive rights, protective provisions, and Company commits to national exchange listing within 12 months.
Closing expected March 31, 2026, subject to customary conditions; securities unregistered under Section 4(a)(2)/Rule 506(b).
Remainder of ~$27.5M proceeds for transaction fees, business growth, working capital.