SOUTHBOROUGH, Mass., Sept. 9, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV) a world leader in the design and manufacture of controls for zero emission electric and hybrid vehicles, today announced that its $10 million rights offering for shares of new Series A Convertible Preferred Stock was substantially oversubscribed when it closed on September 8, 2014. Final allocations of the oversubscription shares will be made by the end of this week. Sevcon will issue 465,000 shares, and will return the excess subscriptions to subscribers as soon as practicable thereafter.
The purpose of the rights offering was to raise equity capital in a cost-effective manner that provided all of Sevcon's existing shareholders the opportunity to participate. The net proceeds will be used for general corporate purposes and growth, including funding Sevcon's ongoing research and development and product commercialization initiatives as well as acquisitions of other businesses.
The preferred stock carries a 4 percent cumulative annual dividend, and will be convertible at any time at the holder's option into shares of Sevcon's common stock at an initial conversion price of $8.00 per share, representing a conversion ratio of three shares of common stock for each share of preferred stock, subject to adjustment.
Subscribers may obtain further information by contacting the Information Agent for the rights offering at (855) 793-5068.
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of controls for zero emission electric and hybrid vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions, and to optimize the energy consumption of the vehicle's power source. Sevcon supplies customers throughout the world from its operations in the USA, the UK, France and the Asia Pacific region and through an international dealer network. Sevcon's customers are manufacturers of on and off road vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. For more information, visit www.sevcon.com.
Statements in this release about the rights offering and our plans are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate. Among other things, global demand for electric vehicles incorporating our products may not grow as much as we expect, we may not be able to attract and retain the level of high quality engineering staff that we need to develop the new and improved products we need to be successful, and companies we acquire may be more costly to acquire and integrate, or may not generate as much revenue and earnings, as we anticipate. Please see the Company's most recent Forms 10-K and 10-Q on file with the SEC for further information regarding Sevcon's risk factors.