Westport Fuel Systems Issues 4.85 Million Shares at $2.06 Each

Westport Fuel Systems announced that it has entered into a definitive securities purchase agreement for the purchase and sale of 4,854,369 common shares in a registered direct offering and, in a concurrent private placement, warrants to purchase up to 4,854,369 common shares, priced at-the-market under Nasdaq rules. The combined effective purchase price for each common share and associated private placement warrant is $2.06. The private placement warrants have an exercise price of $2.06 per common share, will be immediately exercisable and will expire two years following the date of issuance. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of its warrants if the holder would beneficially own in excess of 9.99% of the number of Westport common shares outstanding immediately after giving effect to such exercise. The offering is expected to close on or about June 23, subject to the satisfaction of customary closing conditions. The gross proceeds to Westport from the offering are expected to be approximately $10M, before deducting the placement agent's fees and other offering expenses payable by Westport. Craig-Hallum is acting as the sole placement agent for the offering.