Capstone Turbine Plans Equity Offering

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Capstone Turbine Corp. shares fell 15 percent Monday after the producer of low-emission microturbine systems said it plans an equity offering with select investors that should net about $11.2 million.

The Chatsworth company said it is selling 14.5 million units consisting of one common share and a warrant to buy three quarters of a share. Each unit is priced at 86.5 cents, with the offering expected to close Thursday.

The warrants, which can be exercised for seven years at a price of 95 cents per share, represent the right to acquire up to 10.8 million common shares. The company has nearly 174 million shares outstanding. Proceeds will be used for product development and other general corporate purposes.

Capstone also announced that it expects revenue for its 2009 fiscal year ended March 31 to hit $44 million, a 41 percent increase. The company plans to report earning on June 15.

Shares of Capstone closed down 13 cents to 75 cents on the Nasdaq.

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