Enova Systems Inc. has completed a financing that will be used to further develop hybrid electric and all-electric drive systems, and fund an initiative to make fleet purchases more affordable.
The Torrance company, which also makes drive system components for the “green” commercial vehicle market, on Thursday said it sold 11.2 million shares of common stock, plus warrants to purchase a like number of shares in the future, for gross proceeds of $1.7 million.
Net proceeds will be used to scale up production of its new Omni Drive System, and further pay for its “Green For Free” initiative. In conjunction with Freightliner Custom Chassis Corp., the companies are offering fleet executives the ability to purchase all-electric vehicles for the cost of a diesel-powered commercial vehicle.
Enova’s sales have been hurt by over the last several quarters by the uncertain economy, which has prompted large customers to delay or reduce their orders.
Shares closed up 1 cent, or 3 percent, to 18 cents on the New York Alternet.