$750,000 pre-IPO mezzanine offering placed by Ideal Power, Inc.


Ideal Power, Inc. successfully completed its $750,000 mezzanine offering which started last month. The brokered private placement was subscribed by thirteen investors. MDB Capital Group LLC acted as placement agent. The company, previously known as Ideal Power Converters, raised an estimated $4.5 million via three previous offerings. The private placement, excluding $80,000 paid to officers and $75,000 paid in placement fees, brings in expected net proceeds of $595,000.

It is a mezzanine financing indeed as the placement agent and S-1 filing suggest. Ideal Power is offering 2.5 million shares at $5 in a firm commitment offering underwritten by MDB Capital group. The company will be trading under ticker “IPWR” on the Nasdaq and expect to raise an estimated $11.25 million in net proceeds.

The company developed an innovative electronic power conversion technology called Power Packet Switching Architecture (PPSA).  PPSA is a new universal power conversion topology intended to improve upon current power conversion technology in key product metrics, such as weight, size, cost, efficiency and flexibility.  For example converters and inverters developed by the company do not require transformers and are wall-mountable. PPSA utilizes standardized hardware with customizable software. Electronic power converters change the form of electrical energy to optimize generation, distribution, consumption or storage.  This conversion may include changing between direct circuit (DC) and alternative current (AC) forms of electricity or changing the voltage and current. Though Ideal Power intends ultimately to generate revenues primarily by licensing its technology to partners, the company begun by developing and selling its reference products to demonstrate the capabilities of its technology to future partners.

The company, founded in June 2008, is headquartered in Spicewood TX and had revenues of $266,000 for fiscal year 2012. The executive team includes Paul A. Bundschuh (CEO), William “Bill” C. Alexander (Founder and CTO), Christopher “Chris” P. Cobb (President & COO), Barry Loder and Charles F. De Tarr (CFO).
The board of directors includes Mark L. Baum and Lon E. Bell.

Offering recap
Status: Completed/Final close
Company: Ideal Power Inc.
Industry: Other Energy
Amount offered: $750,000
Amount placed: $750,000

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