Commerce Energy Secures $22 Million Bridge Financing

Commerce Energy Group, Inc. (AMEX: EGR), a leading U.S. electricity and natural gas marketing company, today announced that it has closed on bridge financing of up to $22.1 million in convertible subordinated short-term debt from AP Finance, LLP, an affiliate of Platinum Partners, a multi-strategy hedge fund. The debt is convertible at the option of the holder at any time at an initial conversion price of $3.00 per share and has a warrant to purchase 2,773,333 shares of our common stock at a price of $1.15. In connection with this financing, the company’s current lender, Wachovia, waived all existing defaults under our Loan and Security Agreement. “We are extremely proud of securing this financing for Commerce Energy in the current difficult credit environment,” said Doug Mitchell, chief financial officer of Commerce Energy.... [read full story]