Under the terms of the agreement, Westport can access the funds by selling common shares to Roth Principal Investments. Management stated the proceeds are earmarked for general corporate purposes and working capital requirements. The company maintains control over the timing and volume of the share issuances, though this authority is capped at 19.99% of its currently outstanding common shares. Exceeding that threshold would trigger a requirement for formal shareholder approval.
In section Market Quotes
Westport Fuel Systems Secures $25 Million Credit Line
Westport Fuel Systems has finalized a $25 million equity line of credit with an affiliate of Roth Capital Partners. The automotive components manufacturer intends to use the capital to shore up its liquidity, gaining the flexibility to issue and sell common shares at its discretion through private placements.
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