May 11, 2007
Distributed Energy in dire straits
Mounting losses and a “significantly” deteriorated financial position have led Distributed Energy Systems to take a high interest, $12.5 million loan from a private equity fund in exchange for the rights to buy just under a quarter of the Wallingford-based company. Although the loan from Washington D.C.-based Perseus has yet to close, Distributed Energy said in financial documents that it lacks the cash to remain in business beyond the second quarter of 2007 without it. The loan, known as a securities purchase agreement, also provides for a subsequent infusion of $15 million in exchange for the right to more equity in the company. The company, which makes products for distributed, or on-site, power generation, reported a first quarter net loss of $14.6 million, double the $7.3 million it lost in the same quarter last year. Losses per share and diluted share were 37 cents, compared with 20 cents in the first quarter of last year.
WBJ Web Partners
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