Press Release – New York, NY – March 29, 2017 – Nationally recognized securities and corporate law firm Sichenzia Ross Ference Kesner LLP announced today that it has represented Philou Ventures, LLC (“Philou”) in connection with its entry into a Preferred Stock Purchase Agreement (the “Purchase Agreement”) with Digital Power Corporation, a California corporation (the “Company”), a solution-driven organization that designs, develops, manufactures and sells high-grade customized and flexible power system solutions for applications in the medical, military, telecom and industrial markets. The Purchase Agreement was executed on March 9, 2017.
Pursuant to the terms of the Purchase Agreement, Philou agreed to invest up to $5,000,000 in the Company through the purchase of Series B Preferred Stock (“Preferred Stock”) during the period ending March 24, 2020. Each share of Preferred Stock shall be purchased at $10.00 up to a maximum issuance of 500,000 shares of Preferred Stock. Philou guarantees to purchase by May 31, 2017, the greater of: (i) 100,000 shares of Preferred Stock or (ii) a sufficient number of shares of Preferred Stock to ensure that the Company has sufficient stockholders’ equity to meet the minimum continued listing standards of the NYSE MKT. In addition, for each share of Preferred Stock purchased by Philou, Philou will receive warrants (“Warrants”) to purchase shares of common stock in a number equal to the stated value of each share of Preferred Stock of $10.00 purchased divided by $0.70 at an exercise price equal to $0.70 per share of common stock
On March 24, 2017, Philou acquired 25,000 shares of Series B Preferred Stock of the Company for an aggregate purchase price of $250,000 in gross proceeds. In addition, the Company issued warrants to purchase up to 357,143 shares of the Company’s common stock of at an exercise price of $0.70 per share.
The Sichenzia Ross Ference Kesner LLP team was led by Partners Marc Ross and Henry Nisser and associates Nazia Khan and S. Ashley Jaber.
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