UQM (NYSE: UQM) plans to invest the funds in product development, facilities and equipment, according to a federal regulatory document filed with the Securities and Exchange Commission.
The stock can be sold as soon as the SEC approves the sale, said David Rosenthal, UQM’s chief financial officer, without giving details. UQM makes electric motors and related components for cars, buses and other vehicles at its plant at 4120 Specialty Place east of Longmont near Interstate 25.
The company can use its cash resources and a $32.4 million grant from the U.S. Department of Energy to operate for at least the next two years, according to the federal regulatory document.
UQM was forced to write off $3.8 million in losses in September after CODA Auto electric car manufacturer in Santa Monica, California, filed for bankruptcy last May, according to the document. CODA also had contracted with UQM for an additional $8.2 million in inventory and had been contracted to receive an additional $2 million minimum payment if CODA didn’t buy at least 15,000 UQM motors.
While the CODA Auto bankruptcy was “a disappointment,” UQM is moving forward on partnerships with other electric vehicle companies in the market, mainly focusing on passenger buses, trucks and vans, as well as cars, Rosenthal said.
“More companies out there are looking for electric motors. We’re well into the market. We have a great product and plenty of opportunities out there,” Rosenthal said.
UQM reported total revenue was $4 million for the six months that ended Sept. 30, an increase of 11 percent compared with total revenue of $3.6 million in the same period a year ago. Net loss for the six months was $1.3 million, or 4 cents per common share, compared with a net loss of $3.9 million, or 11 cents per common share, for the comparable period last year.
On Sept. 30, UQM’s cash was $5.1 million and its working capital amount was $15.5 million.