Echelon Corporation Files Universal Shelf Registration Statement
(San Jose, CA - May 6, 2010) - Echelon Corporation (NASDAQ: ELON) today announced that it has filed a universal shelf registration statement with the U.S. Securities and Exchange Commission, or SEC. When the shelf registration statement is declared effective by the SEC, over the next three years Echelon will have the option to offer and sell, from time to time in one or more offerings, up to $200 million of common stock, preferred stock, debt securities, warrants to purchase any of these securities, depository shares, units or any combination of such securities. Specific terms and share prices of any future offering under this registration statement will be established at the time of any such offering, and will be described in a prospectus supplement that Echelon will file with the SEC.
Echelon intends to use the net proceeds from any sale of securities sold directly by the company under the shelf registration statement for general corporate purposes, which may include working capital, capital expenditures, other corporate expenses and acquisitions of complementary products, technologies or businesses.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
A copy of the final prospectus and prospectus supplement relating to any offering under the registration statement will be filed with the SEC and can be obtained, when available, by contacting: Echelon Corporation, Attention: Investor Services, 550 Meridian Avenue, San Jose, CA 95126.
About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.
Echelon's NES System – the backbone for the smart grid – is used by utilities to replace existing stand-alone electricity meters with a network infrastructure that is open, inexpensive, reliable, and proven. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use. Echelon's LonWorks® Infrastructure products extend the smart grid, powering tens of millions of energy aware, everyday devices made by thousands of companies – connecting them to each other, to the electricity grid and to the Internet. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.
More information about Echelon can be found at http://www.echelon.com.
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Cautionary Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, Echelon's expectations regarding the SEC's approval of the effectiveness of the registration statement; Echelon's expected use of proceeds from the sale of securities under the registration statement; and Echelon's ability to raise capital through the sale of securities under the registration statement. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: the limitations on Echelon's ability to cause the shelf registration declared effective the SEC; changes in operations, financial results and economic conditions that limit Echelon's ability to raise additional capital; and unexpected changes in Echelon's operations that impact its use of proceeds from the sale of securities under the registration statement.
For a detailed discussion of these and other risk factors, please refer to Echelon's Annual Report on Form 10-K for the period ended December 31, 2009 and from time to time other filings with the SEC, which are available on the SEC's Web site (http://www.sec.gov).
Stockholders of Echelon are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Echelon does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this press release, or to reflect the occurrence of unanticipated events.
Contact Information
Contact: |
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Julia O'Shaughnessy |
Allyson Stinchfield |