Publicly traded Beacon manufactures sustainable energy storage and power conversion products that are intended to provide reliable electric power for utility, renewable energy, and distributed generation markets, including megawatt-level flywheel-based systems for frequency regulation and voltage support.
NxtPhase will operate as a subsidiary of Beacon and will continue to market its product lines under its brand name.
 “NxtPhase is moving from being a venture-funded firm to become part of a public company, giving investors an opportunity to be part of a broader company with an array of solutions focused on grid stability and improvement,” NxtPhase CEO Andrea Johnston says. “For our customers, there is added confidence in doing business with a more diversified company with improved capital market access.”
“Our customers and OEM partners will not feel any impact from the new ownership arrangement,” Tim Leyshock, NxtPhase VP Sales & Marketing, adds. “Over the long term they will benefit from the strength of a larger company focused on their needs as they make improvements to the transmission infrastructure.”
Beacon will acquire NxtPhase for 15.7 million new common shares of Beacon. Beacon will grant restricted stock units covering 2.7 million of its new common shares to NxtPhase employees. According to NxtPhase, on April 22, 2005, the closing bid price of Beacon shares on Nasdaq was $0.84.
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