January 5, 2015
Miami Beach-based Car Charging Group, Inc an operator and provider of electric vehicle (EV) charging services, recently announced that it has raised $6 million in funding. The Offering consisted of convertible preferred securities with a conversion price of$0.70 and warrants exercisable at $1.00.
The Company also announced that it has undertaken specific restructuring actions to improve monthly cash flow, including initiatives that are expected to reduce general and administrative expenses by more than 40%. The funding will be used for strengthen CarCharging’s balance sheet and provide growth capital for expanding the Company’s network.
“This capital raise occurs as CarCharging prepares for further expansion in 2015,” said Michael D. Farkas, CEO of CarCharging. “As we pursue both top line growth and a path to profitability, we intend to maintain a strict focus on managing cash while investing in technology and business development initiatives to address the increasing need for quick, convenient, and cost-effective EV charging services.”
Farkas recently was recently interviewed by CCTV where he spoke about the future of electric cars, a growing trend in China. In the interview, he explained that electric cars are environmental friendly only if the source to power the electric cars are also green.
As for the recent funding, two million were disbursed at closing, with the remainder of the funds to be disbursed based upon successful achievement of operating milestones over the next two quarters. CarCharging has also hired a seasoned interim Chief Financial Officer to help lead the Company through its strategic plan towards profitability.
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