According to Nexxus Lighting, Inc. , an affiliate of Aston Capital, LLC (the "Investor") has agreed to invest $6 million in the Company through the purchase of convertible preferred stock to provide strategic, operational and financial expertise for enabling the Company's strategic growth and expansion.
Aston Capital, LLC is led by Robert V. LaPenta, a renowned growth investor and leader in the high technology arena. Mr. LaPenta and Aston's investment philosophy combines sound fundamental operating principles with the ability to identify macroeconomic trends and provide strategic and operational support to management teams to accelerate global growth and build market leaders and shareholder value over the course of the partnership.
Aston's goal is to build a dynamic market leader who will be able to address the significant global demand for this critical technology.
"We view the market for LED lighting to be in the early phase of adoption and we see Nexxus Lighting, with their product lines and intellectual property, as a platform on which to build and grow in the market," stated Robert LaPenta, Chairman and CEO of Aston Capital. "Over the next several years, we believe that LED replacement lamps, luminaires and lighting systems are going to become the new standard in energy efficient lighting applications and we are excited to help Nexxus market and sell their products, build its brand, reach new customers and continue its leadership in innovation to take advantage of these opportunities."
Mike Bauer, President and CEO of Nexxus Lighting, Inc. stated "The last several quarters have been very challenging and the need to find a strong partner became a requirement for the Company. Mr. LaPenta and Aston Capital provide the resources and expertise to help us take advantage of the growing market for LED lighting. They provide Nexxus Lighting with not only financial backing, but also strategic, operational and financial management skills that can help the Company more effectively compete as we work to build the Company into a market leader."
Initially, the Investor will have the right to appoint four members to the Company's Board of Directors, with the size of the Board not to exceed seven members. In connection with the closing of the investment, all of the current members of the Company's Board of Directors will resign.