Sevcon announces $10M rights offering
Southborough-based Sevcon Inc. announced plans Friday to raise $10 million through a rights offering to current stockholders.
The company, which makes microprocessor-based controls for electric and hybrid vehicles, plans to use the proceeds to expand staffing in engineering and sales, bolster its systems electrification business, and explore acquisitions in new markets such as China.
“When we identify a possible acquisition, it would be desirable to have the resources at hand to complete any transaction quickly,” CEO Matt Boyle said in a statement.
Rights offerings typically allow current shareholders to buy additional shares at a price lower than what’s offered to the general public. It also allows them to maintain their proportions of ownership despite the issuance of additional shares.
Sevcon said Meson Capital LP, which is managed by two Sevcon directors, has agreed to purchase up to $1.15 million of stock. A number of other directors and officers have also indicated their intention tobuy stock, Sevcon said.
The preferred stock offering is also expected to include a cumulative dividend, the company said.
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