Financings: Power Efficiency Raises $5 Mil

June 24, 2010 (FinancialWire) — Power Efficiency Corp. (OTCBB: PEFF ), a company focused on energy efficiency technologies for electric motors, said it has completed a private placement of $5.02 million worth of Series D preferred stock and warrants.

In the offering, the company issued 313,752 Units, each unit consisting of one share of Series D Preferred Stock and a warrant to purchase up to 50 shares of the company’s common stock.

Each unit has a purchase price of $16. Each share of preferred stock is initially convertible into 100 shares of common stock. The warrants have a per share exercise price of $0.19.

The Series D Preferred Stock has an 8% dividend, payable annually in cash or stock, at the discretion of the company’s board of directors. The Series D Preferred Stock has a mandatory conversion clause if the closing price of the company’s common stock averages $0.50 or greater, with average daily volume of at least 50,000 shares, over a 10 day period.

Steven Strasser, Power Efficiency’s Chairman and CEO, invested over $550,000 in the financing and has invested a total of around $4.5 million in the company. Nevada-based Power Efficiency is focused on efficiency technologies for electric motors. The company has developed a patented and patent-pending technology platform, called E-Save Technology, which is meant to improve the efficiency of electric motors by up to 35% in certain applications.

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