New Energy Systems To Invest $20 Mln In Quantum Solar In Exchange For 34% Ownership Interest - Quick Facts

Quantum Fuel Systems Technologies Worldwide Inc. (QTWW: News ) announced that the company and its subsidiary, Quantum Solar Energy Inc., has entered into a non-binding letter of intent with New Energy Systems LLC, which sets forth the terms by which New Energy Systems would invest $20 million in Quantum Solar in exchange for a 34% ownership interest in Quantum Solar. The transaction is expected to close within ninety days.

Upon closing of the transaction, Quantum Solar would be owned 51% by Quantum, 34% by New Energy Systems on a fully converted basis, and 15% by Asola. Quantum and New Energy Systems shall each have the right to appoint two members to serve on Quantum Solar's board of directors.

New Energy Systems would invest $20 million in exchange for Series A convertible preferred stock, which would be convertible into shares of Quantum Solar common stock on a one-for-one basis. New Energy Systems would receive a cumulative preferred dividend equal to 2.5% of the investment amount, or $500 thousand annually, for the lesser of seven years or until such time that New Energy Systems has received a total return on its investment equal to $6 million.